Employment Consultation Center

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Introduction
Under the National Strategic Special Zone Act (Act No. 107 of December 13, 2013), thegovernment is supposed to provide information, consultation, advice and other forms ofassistance to foreign companies and other business operators that establish a place of businessand newly hire workers in a national strategic special zone. The purpose of this measure is toallow smooth implementation of businesses to enhance Japan's international industrial
competitiveness or create centers of international economic ac tivities in national strategic
special zones by preventing individual labor-related disputes and taking other actions. The Act
is accompanied by an additional resolution of the Diet stipulating that "the government shallprovide workers with sufficient information on this Act while providing business operators withassistance for preventing individual labor-related disputes under this Act."The Employment Consultation Center was established to provide such necessary information
and assistance. The Center is expected to make it easier for newly created enterprises, global
companies and others to do business without individual labor-related disputes by helping themaccurately understand the employment rules of Japan and improve foreseeability. The Center isalso expected to help increase the motivation and ability of workers by restricting long working
hours, preventing industrial accidents and ensuring stable employment.
This booklet, which summarizes the key points of Japan's labor-related laws, including theLabor Standards Act and the Labor Contracts Act, is intended for use at the Employment
Consultation Center for the purpose of giving business operators and workers advice on
employment management and labor contracts.

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Table of Contents
1. Definitions of Worker and Employer ................................................................................... 5
2. Labor Contracts .................................................................................................................. 6[1] Principles of Labor Contracts .......................................................................................... 6[2] Establishment and Change of Labor Contracts ............................................................... 7[3] Term of Labor Contracts ................................................................................................ 10[4] Fixed-Term Labor Contracts .......................................................................................... 12[5] Clear Indication of Working Conditions ........................................................................ 14- Reference - Side Work and Extra Work ............................................................................ 20[1] Systems concerning Side Work and Extra Work ........................................................... 20[2] Checklists for Responses by Companies and Workers Regarding Side Work and Extra
Work ..................................................................................................................................... 22

3. Working Hours ................................................................................................................. 25
4. Rest Periods...................................................................................................................... 29
5. Days Off ........................................................................................................................... 30
6. Exclusion from Application of Provisions on Working Hours, Rest Periods and Days Off . 32
7. Overtime Work and Work on Days Off .............................................................................. 34
8. Calculation of Working Hours .......................................................................................... 38
9. Annual Paid Leave ............................................................................................................ 41
10. Wages ............................................................................................................................. 44
11. Premium Wages .............................................................................................................. 48
12. Protection of Women ...................................................................................................... 51
13. Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in
Employment ......................................................................................................................... 53
14. Child Care and Family Care Leave Act ........................................................................... 55
15. Countermeasures against Power Harassment in the Workplace ........................................ 59
16. Protection of Minors (Persons Under 18 Years of Age) ................................................... 60
17. Termination of Labor Relationship, etc. .......................................................................... 62[1] Termination of Labor Relationship ................................................................................ 62[2] Advance Notice of Dismissal ........................................................................................... 66[3] Exceptions to Advance Notice of Dismissal .................................................................... 67[4] Certificate upon Separation from Employment, etc. ..................................................... 69[5] Return of Money and Goods .......................................................................................... 693

18. Rules of Employment ..................................................................................................... 70
19. Medical Examination and Safety and Health Management System .................................. 74
20. Labor Insurance (Industrial Accident Compensation Insurance and Employment Insurance)............................................................................................................................................. 77
List of Consulting Organizations .......................................................................................... 79
Minimum Wages ................................................................................................................... 80

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1. Definitions of Worker and Employer(Articles 9 and 10 of the Labor Standards Act and Article 2 of the Labor Contracts Act )■ Worker
A worker to which the Labor Standards Act applies (Article 9 of the same Act) is a person
who, [i] regardless of the type of occupation, is [ii] employed at a business or office , and [iii]receives wages therefrom.
On the other hand, a worker under the Labor Contracts Act (Article 2, paragraph (1) of thesame Act) is different, meaning a person who [i] is a party to a labor contract concluded with an
employer, [ii] works by being employed thereby, and [iii] receives wages therefrom .

■ Employer
An employer under the Labor Standards Act (Article 10 of the same Act) is [i] a business
operator, [ii] the manager of a business, and [iii] any other person who acts on behalf of abusiness operator in matters concerning workers in the business.

On the other hand, an employee under the Labor Contracts Act (Article 2, paragraph (2) of
the same Act) is a person who is a party to a labor contract concluded with a worker and who
pays wages to a worker he/she employs.
Therefore, in the case of a personal business, the owner thereof is the employer, and in thecase of a company or other incorporated organization, the corporation itself is the employer.

52. Labor Contracts[1] Principles of Labor Contracts(1) Basic principles of a labor contract (Article 3 of the Labor Contracts Act)○ Principle of labor-management equality (paragraph (1))
 A labor contract is to be concluded or changed between a worker and an employer by agreement
on an equal basis.
○ Principle of consideration of the balance of treatment (paragraph (2))
 A labor contract is to be concluded or changed between a worker and an employer while giving
consideration to the balance of treatment according to the actual conditions of work.
○ Principle of consideration of the balance between work and private life (paragraph (3))
 A labor contract is to be concluded or changed between a worker and an employer while giving
consideration to work-life balance.
○ Principle of good faith (paragraph (4))
 A worker and an employer must comply with the labor contract, and must exercise their rights
and perform their obligations in good faith.
○ Principle of no abuse of rights (paragraph (5))
 When exercising their rights under a labor contract, a worker and an employer must not abusesuch right.

(2) Promotion of understanding of the contents of a labor contract (Article 4 of the Labor
Contracts Act)An employer is required to ensure that a worker gains an in-depth understanding of the working
conditions and contents of the labor contract presented to the worker. A worker and an employer
are required to confirm the contents of the labor contract, whenever possible , in writing.

(3) Consideration of the safety of a worker (Article 5 of the Labor Contracts Act)An employer is required to give necessary consideration so that a worker can work with thesafety of life and body secured. Laws related to industrial safety and health, inc luding the Industrial
Safety and Health Act, provide for specific measures that employers must take, and these provisions
must be complied with.

(4) Labor contracts violating the Labor Standards Act (Article 13 of the Labor Standards
Act)
Since the Labor Standards Act is a mandatory law, labor contracts which provide for working
conditions which do not meet the standards of th is Act are invalid with respect to such portion. The
portions which have become invalid are to be governed by the standards of this Act.

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[2] Establishment and Change of Labor Contracts(1) Establishment (Articles 6 and 7 of the Labor Contracts Act)○ A labor contract is established by agreement between a worker and an employer on the basisthat "the worker works by being employed by the employer" and "the employer pays wages
for such work."○ An employer does not necessarily have to deliver a document stipulating the contents of thelabor contract to a worker in order to make the contract effective. Even if both parties do
not agree to the details of the working conditions, the labor contract itself can become
effective.
○ If an employer has "rules of employment that provide for reasonable working conditions "and "has informed the worker of those rules of employment," then "the contents of the labor
contract shall be based on the working conditions provided by the rules of employment "because the working conditions of the rules of employment supplement the labor contract.

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(1) A labor contract is established if a worker and an employer agree that "the worker works by being
employed by the employer" and "the employer pays wages for such work."(2) The working conditions of the worker are determined by agreement between the worker and theemployer.
(3) If the worker is employed by the employer without detailed working conditions being provided forin the labor contract, as long as the employer has "rules of employment that provide for reasonable
working conditions" and "has informed the worker of the rules of employment," then the worker
shall be subject to the working conditions of the rules of employment.
(4) However, if the worker and the employer "agree on working conditions that are different from thecontents of the rules of employment," the agreement takes precedence over the working conditionsof the rules of employment (unless the agreed working conditions fail to meet the standards of therules of employment).

(2) Change (Articles 8, 9 and 10 of the Labor Contracts Act)○ "A worker and an employer" may, "by agreement," "change any working conditions that
constitute the contents of a labor contract."○ Making a change to a labor contract does not necessarily require the delivery of a document
describing the change to the worker.
○ An employer may not, unless an agreement has been reached with a worker, change any of
the working conditions that constitute the contents of a labor contract in a mannerdisadvantageous to the worker by changing the rules of employment.
○ However, if "the employer has informed the worker of the changed rules of employment"
and if "the change to the rules of employment is reasonable," "the working conditions that8

constitute the contents of a labor contract are to be in accordance with the changed rules of
employment," as an exception to the principle of agreement.

(1)(1) A worker and an employer may, by agreement, change any working conditions.
(2) When changing any working conditions by changing the rules of employment, as a general rule, theemployer is not allowed to change the working conditions in a manner disadvantageous to theworker. However, if the employer "has informed the worker of the changed rules o f employment"
and if "the change to the rules of employment is reasonable, " the working conditions shall be inaccordance with the changed rules of employment.
(3) However, regarding "any portion of the labor contract which the worker and the employer have agreed
on as being the working conditions that are not to be changed by any change to the rules of
employment," the agreement takes precedence over the changed rules of employment (unless theagreed working conditions fail to meet the standards established by the rules of employment).

9[3] Term of Labor Contracts
As a fixed-term labor contract binds the worker and the employer for the relevant term, neither
party is allowed to terminate the labor contract only for its own reasons without special
circumstances. The Labor Standards Act limits the terms of fixed-term labor contracts as follows(Article 14 of the Labor Standards Act):

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The Ministry of Health, Labour and Welfare provides standards of measures that employers
should take to prevent labor-management troubles at the time of conclusion and expiration of fixedterm labor contracts.

Standards for Conclusion, Renewal and Non-Renewal of Fixed-Term Labor
Contracts(Public Notice No.357 of the Ministry of Health, Labour and Welfare of October 22, 2003)(Public Notice No.12 of the Ministry of Health, Labour and Welfare of January 23, 2008)(Public Notice No.551 of the Ministry of Health, Labour and Welfare of October 26, 2012)(Advance Notice of Non-Renewal of Employment)
Article 1 If an employer does not renew a fixed-term labor contract with a worker (limited to aworker who has had the fixed-term labor contract renewed at least three times beforeor has continuously worked for the employer for more than one y ear from the date of
employment, and excluding a fixed-term labor contract in which it is made clear thatthe contract will not be renewed; hereinafter, the same applies in paragraph 2 of thefollowing Article), the employer must give the worker advance notice of non-renewal
at least 30 days prior to the expiration date of the labor contract.
(Clarification of Reasons for Non-Renewal of Employment)
Article 2 (1) In the case referred to in the preceding Article, if the worker requests a certificateof the reasons for non-renewal, the employer must deliver such a certificate to theworker without delay.
(2) In the event that a fixed-term labor contract is not renewed, if the worker requests
a certificate of the reasons for non-renewal, the employer must deliver such acertificate to the worker without delay.
(Consideration Regarding Contract Terms)
Article 3 If an employer renews a fixed-term labor contract with a worker (limited to a worker
who has had the fixed-term labor contract renewed at least once and has continuously
worked for the employer for more than one year from the date of employment), theemployer must endeavor to extend the contract term as long as possible according to
the actual conditions of the contract and the request of the worker.

11[4] Fixed-Term Labor Contracts○ During the term of a fixed-term labor contract, an employer may not dismiss a worker unlessthere are unavoidable circumstances (Article 17, paragraph (1) of the Labor Contracts Act).
○ Whether an employer has unavoidable circumstances to dismiss a worker should bedetermined on a case-by-case basis. However, since a contract term is determined byagreement between a worker and an employer and should be complied with, cases in which
an employer is considered to have "unavoidable circumstances" are to be limited morenarrowly than cases other than those in which dismissal "lacks objectively reasonablegrounds and is not considered to be appropriate in general social terms" in accordance withthe doctrine of abusive dismissal.
○ Even if a worker and an employer have agreed that the employer is allowed to dismiss theworker for a certain reason during the contract term, such reason is not immediately
considered to constitute "unavoidable circumstances." Whether an employer has"unavoidable circumstances" for actual dismissal is determined on a case-by-case basis.
○ As Article 17, paragraph (1) of the Labor Contracts Act provides that "an employer may notdismiss a worker" under a fixed-term labor contract, this clause does not justify any
employer's dismissal of a fixed-term worker during the term of the labor contract; suchdismissal can be justified by Article 628 of the Civil Code. An employer bears the burdenof proving facts showing that there are "unavoidable circumstances."○ The Labor Contracts Act contains the following three rules on fixed-term labor contracts toensure proper use of these contracts.

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I. Conversion to an open-ended labor contract (Article 18 of the Labor Contracts Act)
If a fixed-term labor contract is repeatedly renewed over a period exceeding five
years, this fixed-term labor contract can be converted into an open-ended labor
contract if the worker makes a request. (*)* Special provisions are provided respectively for fixed -term workers, such as
researchers and teachers, etc. of universities or research and development agencies
or those with advanced expert knowledge engaged in work scheduled to be completed
in a certain period of time exceeding five years, and for fixed-term workers who arecontinuously employed after reaching the retirement age.

II. Legal principle of non-renewal of employment (Article 19 of the same Act)
The Act has incorporated the doctrine concerning non-renewal of employment
established by a judgment of the Supreme Court. If an employer's non-renewal of a
fixed-term labor contract objectively lacks reasonable grounds and is not found to beappropriate in general social terms, such non-renewal is not allowed. In such a case,the employer is deemed to have accepted the worker's offer for renewal or conclusionof a fixed-term labor contract with the same working conditions as those of theprevious fixed-term labor contract, and a new fixed-term labor contract comes into
effect with the same working conditions.

13[5] Clear Indication of Working Conditions
When an employer employs a worker, the employer is required to clearly indicate wages,
working hours and other working conditions to the worker by delivering a document containing
such working conditions to the worker or by other similar means.
In the event that the clearly indicated working conditions are different from the actual working
conditions, the worker may immediately cancel the labor contract (Article 15 of the Labor Standards
Act).
* Under Article 5 of the Regulation for Enforcement of the Labor Standards Act (Order of the
Ministry of Health and Welfare No.23 of 1947), the method of clearly indicating working
conditions is defined to be through the delivery of a document, in principle, but if a worker
requests either of the following methods, that method may be employed.
[i]A method of sending a document using facsimile[ii] A method of sending a document by e-mail or other means of telecommunications fortransmitting information by specifying a receiver (meaning telecommunicationsprescribed in Article 2, item (i) of the Telecommunications Business Act (Act No.86 of
1984); hereinafter referred to as "e-mail, etc.") (only for a worker who can create adocument by outputting the record of the e-mail, etc.)

14Working conditions that must be clearly indicatedMatters to be clarified throughthe delivery of a document, etc.

○ Working conditions to be clearly indicated in writing under the Act on Improvement, etc.
of Employment Management for Part-Time and Fixed-Term Workers (Part-Time and FixedTerm Workers Act)
(Article 6 of the Part-Time and Fixed-Term Workers Act* and Article 2 of the Regulation
for Enforcement of the Part-Time and Fixed-Term Workers Act)
When an employer employs a part-time or fixed-term worker, the employer is required toclearly indicate the working conditions listed below to the part -time worker promptly bydelivering a document to the worker or by other similar means, in addition to the working
conditions listed above:
・Whether wages are increased or not within the term of the labor contract
・Whether retirement allowances are paid or not
・Whether bonuses are granted or not
・Consultation service related to improvement, etc. of employment management of parttime and fixed-term workers

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(For Ordinary Workers Continuously Employed for a Fixed Term)

Notice of Working Conditions
Date:
Mr./Ms.
Name and Address of the Workplace
Name of the Employer
Contract Term Not fixed/Fixed (Fromto)* Fill in the section below if the contract term is “Fixed.”
1 Renewal of the contract[Automatically renewed; Can be renewed; Not renewed; Other ()]
2 Factors for deciding whether to renew the contract
 Workload at the expiration of the contract term  Work performance and attitude Competency  Business condition of the company  Progress of the assigned work
 Others ()[For a person eligible for the special provisions under the Act on Special Measures Concerning Fixed-term
Employees with Expert Knowledge and Skills
Period without the right to apply for shift to a non-fixed term status:
I: (advanced expert); II: (elderly person after retirement)
I Period from the commencement to the completion of specified fixed-term operations ( years andmonths (up to ten years))
II Period of being employed continuously after retirement

Place of Work
Assigned Work[For a person eligible for the special provisions under the Act on Special Measures
Concerning Fixed-term Employees with Expert Knowledge and Skills]
・Specified Fixed-term Operations (: Fromto)Starting and 1 Starting and finishing times
Finishing(1) Starting time () Finishing time ()
Times, Rest
(If any of the following systems applies to the worker)
Period and(2) Variable working hours system, etc.: Variable working hours system or work shift system on a
Change in Shift() basis with a combination of the following working hours
Work (circle
Starting time () Finishing time () (Applicable days:)
the applicableStarting time () Finishing time () (Applicable days:)
number fromStarting time () Finishing time () (Applicable days:)(1) to (5)), and(3) Flextime: Starting and finishing times left to the worker’s discretion
Overtime Work
(Exception: Flexible time
(Starting time)From
to(Finishing time)
From
toCore timeFromto)(4) Deemed working hours outside the workplace: Starting time () Finishing time ()(5) Discretionary work system: Starting and finishing times left to the worker’s discretion with abasic starting time at () and a basic finishing time at ()○ For more details, refer to Articles to , Articles to and Articles to of the Rules of
Employment.
2 Rest period: () minutes
3 Overtime work (Required/Not required)
Days Off
Regular days off: Every () (day of the week), public holidays and others ()
Irregular days off:days per week or month and others ()
In case of a one-year variable working hours system:
days per year
○ For more details, refer to Articles to and Articles to of the Rules of Employment.
Leave
1 Annual paid leave: Working continuously for at least six months
days
Annual paid leave for working continuously for less than six months(Available/Not available)days if the worker has worked at least months
Annual paid leave on an hourly basis (Available/Not available)
2 Substitute leave (Available/Not available)
3 Other leave: Paid ()
Unpaid ()○ For more details, refer to Articles to and Articles to of the Rules of Employment.
(Continued on the next page)

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Wages

1 Basic wage(a) Monthly wage (yen) (b) Daily wage (yen)(c) Hourly wage (yen)(d) Piecework wage (Basic wage:
yen Guaranteed wage:yen)(e) Other wages (yen)(f) Wage classification and other wage-related matters stipulated in the Rules of
Employment

2 Amounts or calculation formulas of allowances(a) (allowance
yen / Calculation formula:)(b) (allowance
yen / Calculation formula:)(c) (allowance
yen / Calculation formula:)(d) (allowance
yen / Calculation formula:)
3 Increased wage rates for overtime work, work on days off and night work(a) Overtime work: Exceeding the statutory working hours Within 60 hours per month ( ) %Over 60 hours per month ( ) %Exceeding the predetermined working hours ( ) %(b) Work on a day off: Statutory holiday ( ) % Non-statutory holiday ( ) %(c) Night work: ( ) %4 Cutoff day: ( ): th day of every month ( ): th day of every month
5 Pay day: ( ): th day of every month ( ): th day of every month
6 Payment method: ()
7 Wage deduction under a labor-management agreement (Not applicable/Applicable ())
8 Wage increase (Available (Time and other details:)/Not available)
9 Bonus (Available (Time, amount and other details:)/Not available)
10 Retirement allowance (Available (Time, amount and other details:)/Not available)
Retirement

1 Mandatory retirement system (Applicable ( years old)/Not applicable)
2 Continued employment system (Applicable (until years old)/Not applicable)
3 Voluntary retirement procedure (Notification required at least days prior to retirement)
4 Grounds and procedure for dismissal○ For more details, refer to Articles to and Articles to of the Rules of Employment.
Enrollment in social insurance schemes (employees’ pension insurance, health insurance,
Miscellaneous
employees’ pension fund and other schemes ())
Applicability of employment insurance (Applicable/Not applicable)
・ Consultation service on employment management improvements [Department:

Responsible personnel:(contact information:)]

Others* If the contract term is "Fixed"
Under Article 18 of the Labor Contracts Act, if the total term of a fixed-term labor contract (whichbecomes effective on or after April 1, 2013) exceeds five years, the labor contract is converted into alabor contract without a fixed term on the day following the day of expiration of the relevant fixedterm labor contract if the worker makes a request by that expiration date. When the special
provisions under the Act on Special Measures Concerning Fixed-term Employees with Expert
Knowledge and Skills are applicable, this five-year period is to be as indicated in the column of"Contract Term" on this notice.

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(For Part-Time Workers Continuously Employed for a Fixed Term)

Notice of Working Conditions
Date:
Mr./Ms.
Name and Address of the Workplace
Name of the Employer
Contract Term Not fixed/Fixed (Fromto)* Fill in the section below if the contract term is “Fixed.”
1 Renewal of the contract[Automatically renewed; Can be renewed; Not renewed; Other ()]
2 Factors for deciding whether to renew the contract
 Workload at the expiration of the contract term  Work performance and attitude Competency  Business condition of the company  Progress of the assigned work
 Others ()[For a person eligible for the special provisions under the Act on Special Measures Concerning Fixed-term
Employees with Expert Knowledge and Skills
Period without the right to apply for shift to a non-fixed term status:
I: (advanced expert); II: (elderly person after retirement)
I Period from the commencement to the completion of specified fixed-term operations ( years andmonths (up to ten years))
II Period of being employed continuously after retirement

Place of Work
Assigned Work[For a person eligible for the special provisions under the Act on Special Measures
Concerning Fixed-term Employees with Expert Knowledge and Skills]
・Specified Fixed-term Operations (: Fromto)Starting and 1 Starting and finishing times
Finishing(1) Starting time () Finishing time ()
Times, Rest
(If any of the following systems applies to the worker)
Period and(2) Variable working hours system, etc.: Variable working hours system or work shift system on a
Change in Shift() basis with a combination of the following working hours
Work (circle
Starting time () Finishing time () (Applicable days:)
the applicableStarting time () Finishing time () (Applicable days:)
number fromStarting time () Finishing time () (Applicable days:)(1) to (5)), and(3) Flextime: Starting and finishing times left to the worker’s discretion
Overtime Work
(Exception: Flexible time
(Starting time)From
to(Finishing time)
From
toCore timeFromto)(4) Deemed working hours outside the workplace: Starting time () Finishing time ()(5) Discretionary work system: Starting and finishing times left to the worker’s discretion with abasic starting time at () and a basic finishing time at ()○ For more details, refer to Articles to , Articles to and Articles to of the Rules of
Employment.
2 Rest period: () minutes
3 Overtime work (Required (hours/week,
hours/month,
hours/year)/Not required)
4 Work on days off (Required (days/month,days/year)/Not required)
Days Off andRegular days off: Every () (day of the week), public holidays and others ()
Working Days
Irregular days off:days per week or month and others ()
In case of a one-year variable working hours system:
days per year
(Working days): Every week (), Other ()○ For more details, refer to Articles to and Articles to of the Rules of Employment.
Leave
1 Annual paid leave: Working continuously for at least six months
days
Annual paid leave for working continuously for less than six months(Available/Not available)days if the worker has worked at least months
Annual paid leave on an hourly basis (Available/Not available)
2 Substitute leave (Available/Not available)
3 Other leave: Paid ()
Unpaid ()○ For more details, refer to Articles to and Articles to of the Rules of Employment.
(Continued on the next page)

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Wages

1 Basic wage(a) Monthly wage (yen) (b) Daily wage (yen)(c) Hourly wage (yen)(d) Piecework wage (Basic wage:
yen Guaranteed wage:yen)(e) Other wages (yen)(f) Wage classification and other wage-related matters stipulated in the Rules of
Employment

2 Amounts or calculation formulas of allowances(a) (allowance
yen / Calculation formula:)(b) (allowance
yen / Calculation formula:)(c) (allowance
yen / Calculation formula:)(d) (allowance
yen / Calculation formula:)
3 Increased wage rates for overtime work, work on days off and night work(a) Overtime work: Exceeding the statutory working hours Within 60 hours per month ( ) %Over 60 hours per month ( ) %Exceeding the predetermined working hours ( ) %(b) Work on a day off: Statutory holiday ( ) % Non-statutory holiday ( ) %(c) Night work: ( ) %4 Cutoff day: ( ): th day of every month ( ): th day of every month
5 Pay day: ( ): th day of every month ( ): th day of every month
6 Payment method: ()
7 Wage deduction under a labor-management agreement (Not applicable/Applicable ())
8 Wage increase (Available (Time and other details:)/Not available)
9 Bonus (Available (Time, amount and other details:)/Not available)
10 Retirement allowance (Available (Time, amount and other details:)/Not available)
Retirement

1 Mandatory retirement system (Applicable ( years old)/Not applicable)
2 Continued employment system (Applicable (until years old)/Not applicable)
3 Voluntary retirement procedure (Notification required at least days prior to retirement)
4 Grounds and procedure for dismissal○ For more details, refer to Articles to and Articles to of the Rules of Employment.
Enrollment in social insurance schemes (employees’ pension insurance, health insurance,
Miscellaneous
employees’ pension fund and other schemes ())
Applicability of employment insurance (Applicable/Not applicable)
・ Consultation service on employment management improvements [Department:

Responsible personnel:(contact information:)]

OthersSpecific title of applicable rules of employment ()* If the contract term is "Fixed"
Under Article 18 of the Labor Contracts Act, if the total term of a fixed-term labor contract (whichbecomes effective on or after April 1, 2013) exceeds five years, the labor contract is converted into alabor contract without a fixed term on the day following the day of expiration of the relevant fixedterm labor contract if the worker makes a request by that expiration date. When the special
provisions under the Act on Special Measures Concerning Fixed-term Employees with Expert
Knowledge and Skills are applicable, this five-year period is to be as indicated in the column of"Contract Term" on this notice.

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- Reference - Side Work and Extra WorkAn increasing number of workers want to do side work or extra work in diverse forms forvarious reasons, but many companies do not permit employees' side work or extra work.
In light of such circumstances and the Action Plan for the Realization of Work Style Reform(decided by the Council for the Realization of Work Style Reform on March 28, 2017), theMinistry of Health, Labor and Welfare established the Guidelines on the Promotion of SideWork and Extra Work in January 2018. In September 2020, a revision was made to clarify
rules, such as indicating concrete methods for ascertaining workers' working hours at places
for side work or extra work based on self-report, etc. and simple methods for managing
workers' working hours. In July 2022, from the perspective of promoting workers' diverse
career development, the ministry revised the Guidelines to encourage companies to disclose
information on the status of their measures promoting side work and extra work.
This Section outlines the current systems concerning side work and extra work andsummarizes the Guidelines.

[1] Systems concerning Side Work and Extra Work
(1) Labor insurance (industrial accident insurance and employment insurance) andsocial insurance (social pension insurance and health insurance)
Labor insurance (industrial accident insurance and employment insurance) and social
insurance (social pension insurance and health insurance) apply to workers doing side work
or extra work as shown in the following table.
Insurance type
Labor insurance

Industrial

accident

Application
Applied at all places of employment, in principle, and insurancecompensation

benefits are provided based on the amount totaling all wages paid

insuranceat all places of employment.

Employment

Procedures for employment insurance are undertaken for any

insurance

worker who will be the insured irrespective of whether he/she doesside work or extra work.
However, when a worker is employed by multiple employers at
the same time and satisfies the requirements for employment
insurance respectively under those employment relationships,
employment insurance is only applicable to the employment
relationship under which the worker earns major wages necessary
for maintaining a livelihood.
*On January 1, 2022, a new system was commenced under which
workers aged 65 or older who work at multiple workplaces andsatisfy the requirements for employment insurance when adding up
all working hours at any two of those multiple workplaces may

20become the insured by filing an application by themselves.
Social insuranceSocialpensioninsurancea. When a worker does not satisfy the requirements at any
workplaces
Social pension insurance is not applicable.

Health insurance

b. When a worker satisfies the requirements at multiple workplaces
Social insurance applies to the worker at each of the multiple
workplaces. The worker selects any of those workplaces and thepension office (or medical insurer) that has jurisdiction over theselected workplace calculates and determines the worker's standard
monthly remuneration amount and collects the insurance premiumfrom the worker.

(2) Working hours and measures to ensure workers' good health
Article 38, paragraph (1) of the Labor Standards Act provides that "As far as applicationof the provisions on working hours is concerned, total hours worked shall be aggregated, even
if the hours worked were at different workplaces." The case where the hours worked were atdifferent workplaces includes the case where a worker worked under different employers(Kihatsu No. 769 of May 14, 1948). The Guidelines on the Promotion of Side Work and Extra
Work present a principle method and a simple method of aggregating working hours based on
the provisions of the same paragraph (hereinafter the simple method is referred to as the"management model"), and companies are expected to adopt a method that is easy to introduce
for themselves for each of the workers doing side work or extra work (for the details of themethods of aggregating working hours and provisions on working hours that are applied byaggregating working hours under the Labor Standards Act and those that are not applied byaggregating working hours, see the Guidelines on the Promotion of Side Work and Extra Work).
Additionally, general medical examinations (Article 66 of the Industrial Safety and HealthAct) and stress checks (Article 66-10 of the same Act) need to also be conducted for workers
doing side work or extra work. For these measures to ensure workers' good health, it is notnecessary to aggregate those workers' regular working hours at multiple workplaces, and theneed for taking relevant measures is to be judged independently based on workers' regular
working hours at each workplace.
However, for workers doing side work or extra work, health mana gement in considerationof their side work or extra work is preferable, in addition to taking statutory measures to ensure
workers' good health.

21

[2] Checklists for Responses by Companies and Workers Regarding Side Work andExtra Work
(1) Responses by companies
Considering judicial precedents, it would be appropriate for companies to consider
permitting employees' side work or extra work, in principle. When permitting employees to
do side work or extra work, companies need to take measures for the following matters.
A. Development of rules of employment, etc.
☑ Companies that prohibit employees' side work and extra work or that adopt a unified
permission system should preferably review their rules of employment towardpermitting employees' side work or extra work.
☑ In order to perform proper labor management in relation to employees' side work andextra work, it is preferable to put in place a mechanism, such as a self -report system, toconfirm whether employees do side work or extra work and the content thereof.
B. Confirmation of employees' side work and extra work
☑ Employers, who naturally cannot know about employees' side work and extra work, areexpected to confirm whether employees do side work or extra work and the content
thereof based on their self-report.
☑ Preferably, employers should confirm the content of employees' side work and extra
work from the perspective of whether relevant work would not cause damage toemployees' safety and good health and whether relevant wor k does not fall underprohibited or restricted work under their rules.
C. (A) Aggregation of regular working hours (primary method of managing working hours)☑ Based on the content of employees' side work or extra work confirmed as mentioned in
B. above, each company should aggregate its employees' regular working hours at thecompany and those at places of side work or extra work individually and confirm
whether there is any part falling under overtime work.
☑ As a result of the aggregation, if there is any part that exceeds the statutory working
hours under the company's working hour system, that part in excess falls under overtime
work. A company that has later concluded a labor contract is deemed to have the relevant
worker do that overtime work as specified by its own agreement under Article 36 (see"Chapter 7 Overtime Work and Work on Days Off" for details).
(B) Introduction of the management model (simple method of managing working hours)☑ It is supposed that each company requests employees do ing side work or extra work
follow the management model and the management model is to be introduced based onconsent of employees and workplaces for side work and extra work through those
employees.
☑ Each company should set the upper limit of working hou rs for respective workplaces
within the range in which the number of hours totaling the statutory monthly working
hours at the company and the number of monthly working hours at workplaces for side
work or extra work is less than 100 hours per month and 80 hours or less on average for22multiple months.
D. (A) Aggregation of working hours in excess of regular working hours (primary method ofmanaging working hours)☑ After employees commence side work or extra work, each company should aggregate
the number of working hours in excess of regular working hours for respective
employees in the order of those actually worked at the company and at workplaces forside work or extra work.
☑ As a result of the aggregation, if there is any part that exceeds the statutory working
hours under the company's working hour system, that part in excess falls under overtime
work. The company needs to limit the number of hours to have employees do overti mework within the upper limit for extension under its agreement under Article 36 and pay
premium wages therefor.
(B) Implementation of the management model☑ Each company should have its employees work within the upper limit of working hours
that it has set as mentioned in C.(B) above.
☑ Employer A must pay premium wages for non-statutory working hours during which
employees worked for Employer A, and Employer B must pay premium wages forworking hours during which employees worked for Employer B.
E. Implementation of health management☑ Companies should have good communication with employees to check whether
employees' overwork due to side work or extra work causes any health problems orhindrance to their original duties.
☑ It is important for employers to take required measures to ensure employees' good healththrough labor-management negotiations, etc.
☑ When an employer gives instructions and has employees do side work or extra work,
the employer should ascertain and aggregate their working hours throug h informationexchange with respective employers of the side work or extra work and take measures
to ensure employees' good health.
F. Disclosure of information concerning side work and extra work
☑ From the perspective of promoting workers' diverse career development, it is preferable
for companies to publicize information such as whether they permit their workers' side
work or extra work and conditions for permission, if any, on their websites, etc. to help
workers' career choice.

(2) Responses by workers
When intending to do side work or extra work, workers need to note the following matters.
A. Reports, etc. concerning side work or extra work
☑ A worker who intends to do side work or extra work first needs to confirm rules
concerning side work and extra work of the company where he/she works.
☑ A worker who intends to do side work or extra work should then select appropriate workin terms of the content of duties and work hours in light of rules of the company where
he/she works, while utilizing information on side work and extra work disclosed by the23company on its website and Hello Work as needed.
☑ When a workplace for side work or extra is determined, a worker should report thecontent of the work to the company in line with the method specified in the rules of
employment, etc.
B. Implementation of health management☑ Upon doing side work or extra work, a worker needs to manage his/her workload
including that at a workplace for side work or extra work, and the progress of andrequired hours for side work or extra work, as well as his/her own he alth conditions.
☑ From the perspective of making employers' measures to ensure employees' good healthtruly effective, workers should report their workloads at workplaces for side work or
extra work and their own health conditions to companies.

24

3. Working Hours■ Statutory working hours (Article 32 of the Labor Standards Act)No employer is allowed to require workers to work more than eight hours a day and morethan 40 hours a week, excluding rest periods (statutory working hours). For workplaces subject
to special measures (workplaces with fewer than 10 workers in commerce, fi lm and theatricalperformance business [excluding the film-making business], health and hygiene business orentertainment business), an employer is allowed to require workers to work up to eight hours
a day and up to 44 hours a week. This means that daily and weekly working hours must be
determined within the limit of the statutory working hours (regular working hours).

■ One-month variable working hours system (Article 32-2 of the Labor Standards Act)
Under this system, an employer is allowed to require workers to work more than thestatutory daily and weekly working hours on a certain day or in a certain week as long as theaverage weekly working hours for a certain period of not more than one month do not exceed
40 hours (or 44 hours for workplaces subject to special measures). To adopt this system, an
employer must determine the following matters under the rules of employment or a labor management agreement. The labor-management agreement must be submitted to the DirectorGeneral of the competent Labour Standards Inspection Office.
[i] Average weekly working hours for the period of variable working hours not exceeding
the statutory working hours
If a period of variable working hours is one month
If the number of calendar days of the month is 31 days
40 hours × Calendar days of the period of variable working hours / 7(or 44 hours for workplaces subject to special mea sures)

177.1 hours
30 days 171.4 hours
29 days 165.7 hours
28 days 160.0 hours[ii] Daily and weekly working hours for the period of variable working hours[iii] Starting day of the period of variable working hours(e.g.) If a one-month work shift is set for a month with 31 calendar days

25

For a month with 31 calendar days, the total monthly working hours must not exceed 177.1 hours. In
this case, the total monthly working hours are 174 hours, so this is legal.

26

■ Flextime system (Article 32-3 of the Labor Standards Act)
Under this system, an employer determines total working hours for a certain period notexceeding three months, and workers work within the limit of the total working hours bydeciding the starting and finishing times for each working day at their own initi ative.
- Requirements of the flextime system [i] The rules of employment or other similar rules must provide that workers may decide theirown starting and finishing times.
[ii] A labor-management agreement must decide the scope of workers working on the flextime
system, a settlement period, total working hours for the settlement period and standard daily
working hours.
* When the settlement period exceeds one month, a notification needs to be submitted to the
Director-General of the competent Labour Standards Inspection Office that has
jurisdiction over the labor-management agreement.
Settlement Period

A period not exceeding three months for whichhours worked by flextime workers must be
determined under their labor contracts

Total working hours for theWorking hours that flextime workers are required tosettlement period

work for the settlement period under their labor
contracts (regular working hours)* The total working hours for the settlement period must meet the condition belo w:
Total working hours for the settlement period≤ (days of the settlement period / 7) × Statutory working hours per week
Standard daily working hours

The length of working hours that serves as the basis
for calculating wages paid when annual paid leave
is takenFlexible time

Hours during which workers can choose when they
start the day and when they finish the day

Core time

Hours during which all workers are expected to be
at work (core time is not mandatory)27

■ One-year variable working hours system (Article 32-4 of the Labor Standards Act)
Under this system, an employer is allowed to require workers to work more than thestatutory daily or weekly working hours on a certain day or in a certain week as long as theaverage weekly working hours for a certain period exceeding one month, but not exceeding
one year, do not exceed 40 hours.
- Requirements of the one-year variable working hours system [i]The applicable period must exceed one month but must not exceed one year.

[ii]

The average weekly working hours for the applicable period must not exceed 40 hours.
(The average weekly working hours for the applicable period must also not exceed 40
hours for workplaces subject to special measures.)[iii] Maximum working hours must be 10 hours per day and 52 hours per week.
[iv] The working days during the applicable period must not exceed 280 days per year.
(If the applicable period does not exceed three months, there is no limitation on the number ofworking days.)[v]

As a general rule, workers must not work more than six consecutive days.

[vi] Premium wages must be paid for actual working hours in excess of the statutory working
hours if regular daily and weekly working hours are shorter than the statutory working
hours or for actual working hours in excess of regular daily and weekly working hours
if the regular daily and weekly hours are longer than the statutory working hours.
[vii] A labor-management agreement must be concluded on the scope of target workers, theapplicable period, the starting day of the applicable period, working days, working hours
for each working day, the effective period and the specified period (if determined) andmust be submitted to the Director-General of the competent Labour Standards Inspection
Office.
[viii] For workplaces continuously employing at least 10 workers, the rules of employment
must contain a provision that a one-year variable working hours system is adopted andsubmitted to the Director-General of the competent Labour Standards Inspection Office.

28

4. Rest Periods(Article 34 of the Labor Standards Act)
○ An employer is required to provide workers with:[i] a rest period of at least 45 minutes if working hours exceed six hours, or[ii] a rest period of at least one hour if working hours exceed eight hours.
○ As a general rule, a rest period must be made available [i] in the middle of working hours, [ii]to all workers at the same time or [iii] at the worker's discretion.
Exceptions to rest at the same time[i] Transport business, commerce, health and hygiene business, entertainment businessand other similar business[ii] Conclusion of a labor-management agreement required for a business not listed above* As a general rule, workers can use their rest period at their discretion. Employers should allow
workers to go out without restriction during rest periods.

29

5. Days Off(Article 35 of the Labor Standards Act)
A day off is a day upon which a worker is not obligated to wor k under his/her labor contract.
Under the Labor Standards Act, a worker must be provided with at least one day off each weekor at least four days off every four weeks. Four days off every four weeks is an exception, so thestarting day of the four-week period must be clarified in the rules of employment or other similar
rules.

Differences between transfer of a day off and provision of a compensatory day off
Transfer of a day off means exchanging a worker's day off with his/her working day in advance(if a worker is required to work on Sunday, his/her day off, for example, he/she may exchange thisday off with Wednesday, for example, in advance).
A compensatory day off is a day off provided as a substitute if a worker works on his/her day
off without transferring it in advance.

30

Differences between transfer of a day off and provision of a compensatory day off
Transfer of a day off

When it takes
place

Requirements

Designation as a
substitute orcompensatory
day off
Wages

When an employer needs to have aworker work on his/her day off in cases
where a labor-management agreement
under Article 36 of the Labor
Standards Act is not concluded[i] The rules of employment must havea clause for transfer of days off.
[ii] A substitute day off must be specified.
[iii] The substitute day off should be as
close to the original day off aspossible.
[iv] Transfer of a day off must be
communicated to the worke r by the d ay
before.
An employer designates a substituteday off in advance.

If an employer provides a substituteday off in the same we ek as theoriginal day off, the employer only
needs to pay normal wages for theoriginal day off and does not need to
pay wages for the substitute day off.
* If t he wo rki ng ho u rs o f th e wee k
inc lu din g a da y o ff on wh ic h a wo rke r i s
made to work exceed the statutory weekly
wo rki ng ho u rs, the ex ce s s wo rking h ou rs
a re o ve rti m e wo rk . In t hi s c a s e, p re mi um
wag e s mu s t be p ai d fo r th e ov e rt i me
wo rk .

31

Provision of a compensatory day
off
When an employer provides a worker
with a day off as compensa tion for
his/her work on another day off

The rules of employment m ust have aclause for provision of compensatory
days off.
* E mp loy e rs c an p ro vi de c o m pen s at o ry
days off at their discretion.
* Provision of a compensatory day off forwo rk on a s ta tut o ry ho li da y re qui re s alab o r-man ag e me nt a g re e me nt und e r
Arti cl e 36 o f the Ac t.

An employer designates acompensatory day off at his/her
discretion or in line with theworker' s request.
Premium wages must be paid forwork on a day off.

6. Exclusion from Application of Provisions on Working Hours, Rest
Periods and Days Off(Article 41 and Article 41-2 of the Labor Standards Act)
The provisions of the Labor Standards Act that relate to working hours, rest periods and days
off do not apply to the following workers (who are subject to the provisions relating to night workand annual paid leave):[i] Workers engaged in agricultural or fishery business[ii] Managers, supervisors and workers handling confidentia l matters[iii] Workers engaged in monitoring or intermittent labor[iv] Workers on day or night duty
The provisions of the Labor Standards Act that relate to working hours, rest periods, days off
and premium wages for work at night do not apply to workers covered under the high-levelprofessional system (who are subject to the provisions relating to annual paid leave) .

Criteria for managers and supervisors
1. Whether the worker assumes important duties and responsibilities corresponding to a position
equivalent to management and is granted appropriate authority for the duties andresponsibilities
2. Whether the important duties and responsibilities of the work er make it impractical to apply theregulations on actual working hours to his/her actual work
3. [i] Whether the worker is appropriately treated with regular pay, including basic pay and position
allowances[ii] Whether the worker is treated more favorably than ordinary workers who do not hold special
positions in terms of the rate of lump sum payment, such as bonuses, and basic wages used forthe calculation of lump sum payment
4. If the worker is in a staff position, whether the worker is appropriately t reated (for example,
whether the worker is assigned to a department related to the planning of important management
issues, and is regarded as at least equal to a line manager or supervisor)(Notice No.17 of the Director-General of the Labour Standards Bureau of September 13, 1947 andNotice No.150 of the Director-General of the Labour Standards Bureau of March 14, 1988)

Workers engaged in monitoring or intermittent labor and workers on day or night duty are exempt
from the whole or part of the regulations on working hours, rest periods and days off if permitted
by the Director-General of the competent Labour Standards Inspection Office.
○ Monitoring labor means labor in which a worker is basically supposed to perform monitoring
duties at a department and normally has little physical or mental strain.

32

○ Intermittent labor means labor in which a worker is basically supposed to work intermittently
and has longer waiting time and shorter working time than ordinary labor.
○ Day or night duty means duty in which a worker normally has little need to work during hours
from the end of work on a working day to the start of work on the following working day oron a holiday. A worker on day or night duty is supposed to stand by at an office to a nswer
phone calls, patrol for prevention of fires and other disasters or respond to emergencies,
including emergency contact.
○ A worker handling confidential matters means a worker who always works alongsideexecutives, shares information with them, communicates information to them and handles
important secrets about management policies or negotiations on alliances or acquisitions andhas to work overtime or on days off to work alongside them, such as an executive secretary
to a director. Workers who only perform routine clerical duties, such as serving tea and sweets
to visitors, informing executives of their daily schedules and checking internal and external
appointments are not included among workers handling confidential matters.

33

7. Overtime Work and Work on Days Off(Article 36 of the Labor Standards Act)
○ Overtime work is to be required only for extraordinary or emergency purposes and should be
minimal. If an employer unavoidably orders workers to work overtime or on a statutory holiday
beyond the statutory working hours, the employer must conclude a labor-managementagreement (agreement under Article 36 of the Act) in advance and submit it to the DirectorGeneral of the competent Labour Standards Inspection Office.
○ A labor-management agreement is concluded between an employer and a representative ofworkers, and the representative of workers must be elected as in the case of a representativeof workers who gives opinions about the rules of employment.
○ An agreement under Article 36 must specify overtime working hours for each of the following
three periods:[i] For one day[ii] For one month[iii] For one year
Extended working hours for the periods [ii] and [iii] must be shorter than 45 hours per monthand 360 hours per year (for workers working under a one-year variable working hours system
for a period exceeding three months, shorter than 42 hours per month and 320 hours per year).

34

■ Upper limits for overtime work
If there are temporary special circumstances for which an employer unavoidably orders aworker to work overtime beyond the extension limits, the employer can provide a special clausein an agreement under Article 36 in advance.
Even in such case, the following must be observed:
・ Annual total hours of overtime work do not exceed 720 hours.
・ Monthly total hours of overtime work and work on days off are less than 100 hours.
・ Monthly averages of the total hours of overtime work and work on days off for theperiods of 2 months, 3 months, 4 months, 5 months, and 6 months all do not exceed 80
hours.
・ Monthly total hours of overtime work may exceed 45 hours for up to six months
per year.
Furthermore, a five-year grace period is granted for businesses and services of construction,
driving of automobiles, physicians, and sugar production in Kagoshima and Okinawa
prefectures. Research and development of new technolog ies and new products are exemptedfrom the application of the upper limits.

○ Examples of special circumstances• Budget and settlement affairs• Busy times during bonus shopping seasons• When there are tight delivery deadlines• Responses to large-scale complaints• Responses to mechanical troubles○ Examples of circumstances not considered to be special circumstances• Circumstances where specific reasons such as those due to operational
necessity, busy times and an employer's needs cannot be presented• Circumstances that obviously arise throughout the year[ix] Efforts are made to minimize overtime work beyond the extension limits.
○ Example of a special clause included in an agreement under Article 36
The working hours that can be extended for a certain period are 45 hours per monthand 360 hours per year. However, working hours can be further extended throughlabor-management consultation up to six times up to 60 hours per month and up to
420 hours per year if an influx of orders significantly exceeding regular output
makes delivery deadlines significantly tight. The rate for premium wages is 30
percent for hours worked in excess of 45 hours per month and 35 percent for hours
worked in excess of 360 hours per year.

35

■ Overtime work by workers engaged in dangerous and injurious work
The maximum hours of overtime work by workers engaged in any of the types of dangerous
and injurious work specified by laws and regulations (nine types of work) are two hours per day(Article 18 of the Regulation for Enforcement of the Labor Standards Act).
○ Examples of dangerous and injurious work•

Work for which workers handle a large quantity of cold materials,
and work in an extremely cold place(e.g. work inside a freezer storage)• Hard work such as work for which workers handle heavy materials(e.g. manually lifting, carrying and putting down items weighing 30 kg
or more)■ Limitation on extended working hours under the Act on the Welfare of Workers Who
Take Care of Children or Other Family Members Including Child Care and Family Care
Leave (the Child Care and Family Care Leave Act)
If a worker who takes care of [i] a child younger than elementary school age or [ii] a family
member who requires care makes a request, an employer is not allowed to make the worker workovertime more than 24 hours per month and more than 150 hours per year unless failure to extend
working hours would impede normal business operations (Articles 17 and 18 of the Child Careand Family Care Leave Act).

36

Example of a Written Notification of an Agreement under Article 36

Extension of working hours and work on days off should be limited to the minimum
necessary. Parties should conclude an agreement in consideration of this principle. The
employer is under an obligation to pay attention to ensure safety under Article 5 of theLabor Contracts Act even in the case of having workers work within the agreed working
hours.

[Form 9 (Re. Article 16, paragraph (1))]◆ Transcribe the details of the concluded agreement under Article 36 in this form and submit it.

You can conclude an agreement under Article 36 with this form. In that case, the signature with or without the seal of a person representing the workers are required.
Any form is accepted if only indispensable matters are all entered.

Labor
insurance No.

Notification of Agreement on Overtime Work/Work on Days Off
Type of businessAn agreement should beconcluded for each workplace(plant, branch, office, etc.).

Metal product manufacturing

Overtime work(i) Workers not
falling under (ii)Type of work

Effective term

1-2-3, ○ ○ Town, ○ ○ City

TEL
Working hours that can be extended

Numberofworkers(aged 18
or older)Regularworking
hours (1day) (atwill)

Decide the period
during which theagreementiseffective. One year
1 year (up to 360 hours for shouldbe(i) and 320 hours for (ii)) preferable.

1 month (up to 45 hoursfor (i) and 42 hours for
S ta rt in g d at e
( M M /D D/ Y Y) April 1, ○ ○ ○ ○
(ii))
Enter

1 day
Hours e xceeding
the statut ory
working hours

One year from
April 1, ○ ○ ○ ○Hours e xceeding
Hours e xceeding
the regula r
the statut ory
working hours
working hours(at will)

Hours e xceeding Hours e xceeding
the regula r
the statut ory
working hours
working hours(at will)

Designing

3 hours

3.5 hours

30 hours

40 hours

250 hours 370 hours

Inspection
Assembly

101020

7.5 hours

Responses to defects in products

7.5 hours

2 hours

2.5 hours

15 hours

25 hours

150 hours 270 hours

7.5 hours

2 hours

2.5 hours

15 hours

25 hours

150 hours 270 hours

Accounting
Purchasing

55

7.5 hours

3 hours

3.5 hours

20 hours

30 hours

200 hours 320 hours

7.5 hours

3 hours

3.5 hours

20 hours

30 hours

200 hours 320 hours

Clearly decide thescope of each work.

Decide the number of hours
exceedingthestatutoryworking hours per day.

Extra orders, deadline change
Clerical work for accountSpecific reasons for work on days off
Concentration of orders

Type of work
Designing

1 day per month

8:30 - 17:30

Saturdays, Sundays and national holidays
Extra orders, deadline change
1 day per month
Assembly
Irrespective of the numbers of hours agreed as above, monthly total hours of overtime work and work on days off must be less than
100 hours and monthly averages for the periods of 2 months to 6 months must not exceed 80 hours.

8:30 - 17:30

Saturdays, Sundays and national holidays

Effective date of the agreement: March 12, ○ ○ ○ ○Name of the labor union (labor union consisting of a majority of the workers of the workplace) or name and title ofa person representing a majority of the workers
Title: Inspection Division Chief
Name: Yamada Hanako
Method of selecting the party to the agreement (in the case o f a person representing a majority of the workers) (by vote)(Check the box.)

A supervisor cannot be a representative of theworkers.
Wh e n in te n d in g to h av e t h e w r i tt en n o t if ica t io n al so
fu n c t io n a s th e w ri t ten ag r eem en t, t h e s ig n a tu r e w i th o r
wi th o u t th e s ea l o f a p er so n r ep r ese n t in g th e wo r k er s i s
req u i red .

The labor union, which is the party to the agreement as stated above, is a labor union consisting of a majority of the workers in the workplace, or the person representing a majority of the workers, who is theparty to the agreement as stated above, represents a majority of the workers.
(Check the box.)
The person representing a majority of the workers is not in a supervisory or management position prescribed in A rticle 41, item (ii) of the Labor Standards Act and has been chosen not based on the intention of theemployer but in accordance with the procedures, such as vote or a show of hands, after being clearly informed that a person w ho concludes agreements as pr escribed in the same Act is to be chosen.
(Check the box.)

March 15, ○ ○ ○ ○When submitting a not ification usi ng the former Form, thestatement s in the dotted frame must be entere d in t he margin
or attach a paper on whic h the releva nt state ments areentered.

To the Director-General of the ○ ○ Labour Standards Inspection Officestarting
the
the
for
annualworking
hours. The starting
date must be thesame day for the
relevant one year
irrespective of theeffective term of theagreement.

Decide the number of hours exceeding
Decide the number of hours exceeding the statutory
the statutory working hours per year. The
working hours per month. The upper limit is 45 hours
upper limit is 360 hours for (i) and 320
for (i) and 42 hours for (ii).
hours for (ii).
The number of statutory d ays
Starti ng and fini shi ng time s on
off on which the employer can statut ory da ys off on which t he
Regular days off (at will)
employer can have workers wor khave workers work

Number ofworkers(aged 18 orolder)

10
20

theHours e xceeding dateforthe regula rcalculation ofworking hours upper
limit(at will)

Concentration of orders(ii) Workers working settlement at the month end
under a one-year Stocktaking
variable working
Decide specifichours system
reasons.
Work on days off

Place of business (telephone number)

Name of business○○Metal Industries

Specific reasons forovertime work

If there is no
labor
union
consisting of amajority of theworkers, make it
clear that the
party
to
the
agreement under
Article 36 is to be
selected.
Then,
select a person
representingamajority of theworkers by vote,a show of hands
or
any
other
method, and enter
that
method.
Appointment by
the employer andselection
basedon the employer's
intention are notallowed. If therelevant
checkboxesarenot checked, thedocument fails to
conform to therequirements forformality as a
notification.

Enter
labor
insurance
numberandcorporate
number.

Corporate No.

Top side

Regardingworkers working
under a one-year
variable working
hours system for aperiod exceeding
three months, use
the columns for(ii).

◆ A notification of an agreement under Article 36 may also be
filed online.
◆ Columns with the indication "at will" may be left blank.

Employer
Title: Plant Manager
Name: Tanaka Taro

37

When intending to have t he written noti fication
also function as the written agreeme nt, thesignat ure with or wit hout the seal of t heemployer i s re quire d.

Monthly total hoursof overtime work
and work on days offmust be less than 100
hours and monthly
averagesfortheperiods of 2 months
to 6 months must notexceed 80 hours.
Confirm
thisprinciple
betweenlaborandmanagement and be
sure to check thebox. If the box is notchecked, the written
notification is noteffective.

8. Calculation of Working Hours
As the Labor Standards Act contains regulations on working hours, days off and night work,
employers are responsible for properly understanding and managing the working hours of workers
concerning whether workers work in accordance with the regulations.
However, the Act has an exception to these regulations: a provision for work deemed to havebeen conducted outside workplaces. This provision applies if employers find it difficult to calculate
the working hours of workers, such as field sales people.
The Act also allows a discretionary work system even for work in workplaces if the means ofexecuting work and the allocation of time need to be left largely to the discretion of workers dueto the nature of the work. Under this system, employers can deem worker s to have worked for thehours as determined in a labor-management agreement without directly managing their working
hours.

■ Work deemed to have been conducted outside workplaces (Article 38-2 of the Labor
Standards Act)In cases where a worker engages in work outside of the workplace during all or part of his/herworking hours, and it is difficult to calculate actual working hours, the worker is deemed tohave worked for the regular working hours.
When a worker must work outside the workplace in excess of the regular working hours, theworker is deemed to have worked for hours considered normally necessary to perform the workor for hours as determined in a labor-management agreement.
However, the provision for work deemed to have been conducted outside workplaces is notapplicable when a group of workers work outside the workplace and a worker in charge ofmanaging their working hours is included in that group or when a worker works outside theworkplace in accordance with concrete work instructions and then returns to the workplace.

38

■ Discretionary work system for professional work (Article 38-3 of the Labor Standards
Act)
Discretionary work system for management-related work (Article 38-4 of the Labor
Standards Act)
Under a discretionary work system, an employer does not give concrete instructions about
the means of executing work or the allocation of time due to the nature of the work and deems
workers to have worked for the working hours as agreed to between labor and management,
irrespective of actual working hours.
◇ Discretionary Work System for Professional WorkSpecified by the Ministerial Regulations(1) Research and development of new products or
technologies or research in cultural or naturalsciences(2) Analysis or design of information processing systems(3) News gathering or editing in the newspaper,
publication or broadcasting business(4) Development of new designs for apparel, interior
decoration, industrial products, advertisements, etc.
(5) Work of producers or directors in the business ofmaking broadcast programs, films, etc.

Specified by the Ministerial Notice(6) Work of copywriters(7) Work of system consultants(8) Work of interior coordinators(9) Creation of game software(10) Work of financial analysts(11) Development of financial products based on knowledgeof financial engineering(12) Teaching and research at universities(13) Work of certified public accountants(14) Work of attorneys(15) Work of architects (first-class registered architects,
second-class registered architects and registeredarchitects for wooden buildings)(16) Work of real estate appraisers(17) Work of patent attorneys(18) Work of tax accountants(19) Work of small and medium enterprise management
consultants

Contained in a labor-management agreement(1) Work covered by the discretionary work system(5) Measures to handle complaints from workers engaged in
the covered work(2) Hours that workers are deemed to have been worked(6) The effective term of the agreement(3) Absence of the employer's concrete instructions about(7) Retention of records on matters (4) and (5) for eachthe means of executing work and the allocation ofworker engaged in the covered work (during thetimeeffective term of the agreement and for three years
thereafter)(4) Measures to secure the health and welfare of workers
engaged in the covered work

◇ Discretionary Work System for Management-related Work・Under this system, workers are deemed to work for the predetermined working hours as long as they meet certain
requirements.
・Work covered by this system is planning, researching and analyzing matters regarding business operation.
・The introduction of this system requires the establishment of a labor -management committee.
・A labor-management committee must be composed of equal numbers of members from labor and management and must
make a resolution on the following matters by a four-fifths majority vote of the members:(1) The scope of work covered by the system(2) The scope of workers engaged in the covered work(3) Hours that workers are deemed to have been worked

39

(4) Measures to secure the health and welfare of wo rkers engaged in the covered work in accordance with theirworking hours(5) Measures to handle complaints from workers engaged in the covered work
(6) The employer's obligation to obtain consent from workers for deeming them to have worked for the working hours
stated in (3) and the prohibition of the employer from disadvantageously treating workers who do not give suchconsent(7) The effective period of the resolution(8) Retention of records on matters (4), (5) and (6) for each worker engaged in the covered work (during the effective
term of the resolution and for three years thereafter)
・This resolution must be submitted to the competent Labour Standards Inspection Office. The measures stated in (4)must be reported to the competent Labour Standards Inspection Office every six months.

40

9. Annual Paid Leave(Article 39 of the Labor Standards Act)
○ An employer is required to grant annual paid leave of 10 working days to workers who havebeen employed continuously for six months from the day of employment and who have reported
to work on at least 80 percent of the total working days. For each additional year of continuous
service after the aforementioned six months, an employer must grant workers annual paid leaveof the number of days corresponding to the years of continuous service given in the table below.
* The same rule applies to part-time workers, including temporary workers, and managers
and supervisors.

Annual paid leave to be granted(For workers who are required to work at least five days or at least 30 hours per week)
Years ofserviceDays
granted

0.5 years

1.5 years

2.5 years

3.5 years

4.5 years

5.5 years

10 days

11 days

12 days

14 days

16 days18 days

6.5 years
or longer
20 days(e.g.) A worker employed on April 5 is granted 10 days of annual paid leave on October 5 ofthe same year. After that, the worker is granted the applicable number of days given in thetable above as annual paid leave on October 5 of each year. The length of service is calculated
from the day of employment, irrespective of payroll cutoff dates and work shift periods.
Annual paid leave for part-time workers(For workers who are required to work not more than four days and less than 30 hours per week)
Regularweeklyworkingdays
4 days3 days2 days
1 day

Regularyearlyworking days

Years of service
0.5
years

1.5 years

2.5 years

3.5 years

4.5 years

5.5 years

6.5 years
or longer

169 -216 days
7 days8 days9 days10 days
12 days
13 days
15 days
121 -168 days
5 days6 days8 days9 days10 days
11 days73-120 days
3 days4 days
5 days6 days7 days48-72 days
1 day
2 days3 days* The number of days of annual paid leave to be granted is determined on the basis of "regular weekly working
days" if regular working days are set on a weekly basis. In other cases, the number of days granted as annual
paid leave is determined on the basis of "regular yearly working days."* The number of days of annual paid leave is calculated on the basis of the number of regular working days
as of the day of granting annual paid leave even if there is a change in the contract concerning the numberof working days in the middle of the year.

○ For each day of annual paid leave, an employer is required to pay the worker:[i] the average wage,[ii] the wage normally paid for regular working hours, or[iii] a wage equal to the daily amount for standard remuneration under the Health Insurance

41

Act (if specified in a labor-management agreement).

■ Carryover
Annual paid leave expires in two years from the day upon which it is granted. Any days ofannual paid leave not used within one year from such day are carried over to the following year
and added to the number of days newly granted as annual paid leave for the following year.
However, if the unused days of annual paid leave are not used in the following year either, they
expire.
Number of days granted as annual paid leave, number of days carried ove r, and their expiration○ An employer has no right to refuse a worker’s request for annual paid leave.
A worker can take annual paid leave without the company's (employer's) approval as longas the worker assigns a desired date of leave by the day before. As an exception, the employer
has the right to ask the worker to take paid leave on a different day if the worker 's leave on
the desired day may obstruct normal business operation. However, employers can exercise
this right only in limited situations; they cannot exercise the right for insignificant reasons
such as being busy or unavailability of substitute workers.
► An employer cannot specify how workers should spend their annual paid leave.
► An employer can allow workers to carry over their ann ual paid leave beyond theexpiration date in their favor.

■ Other rules on annual paid leave○ An employer is not allowed to give workers who have taken annual paid leavedisadvantageous treatment such as wage reduction (or to give better treatment to workers
who do not take annual paid leave than those who have taken paid leave).
○ If a labor-management agreement contains a provision concerning annual paid leaveschedules, labor and management can make prior adjustments for dates upon which workers
can take annual paid leave while reserving five days of annual paid leave for theirdiscretionary use (in this case, if reserved annual paid leave for some workers are less than
five days, the employer must grant them additional annual paid leave to make up for the
shortage).

42

○ A labor-management agreement may specify the provision to allow workers to take up to fivedays of annual paid leave on an hourly basis. If such agreement is reached at a workplace,the workers can decide whether to take their annual paid leave on a daily or hourly basis attheir discretion.
○ An employer must have each worker take annual paid leave for five days within one year
from the day of granting him/her annual paid leave (the base date) by designating the timings
to take leave (the number of days of annual paid leave that each worker requests and takes
discretionally and the number of days of annual paid leave granted to him/her by designating
dates in a planned manner under a labor-management agreement must be deducted from these
five days per year which an employer is obliged to grant to each worker by designating thetimings).
○ An employer must prepare a book to manage annual paid leave for each worker and preserve
it for three years.

4310. Wages
Under the Labor Standards Act, the expression "wages" refers to all payments made by an
employer to a worker as remuneration for his/her labor, regardless of the names of such payments.
Wages thus include monthly basic pay and allowances as well as bonuses and retirement allowances ,whose payment conditions are clarified in advance.

■ Five principles of payment of wages (Article 24 of the Labor Standards Act)(1) in currency(2) in fullAn employer must pay
wages(5) directly to workers(3) at least once a month(4) on a definite date

Exceptions(1) Something other than currency can be

⇒

paid.
(2) Taxes and other expenses can be deducted

If a law or collective agreement*
provides for in-kind wages⇒

from wages.

If a law (on taxes and other publiccharges) or labor-management agreement
provides for such deduction(3) Wages can be paid at least once a month⇒at indefinite dates.

If the wages are extraordinary wages,
bonuses or allowances, or efficiency
allowances or other allowances whose
assessment period exceeds one month* A collective agreement is a document related to working conditions and other matters to which alabor union and an employer affix their signatures or their names and seals. Any part of a labor
contract that contravenes the standards for working conditions and other treatment of workers
given in the collective agreement becomes void . In this case, the invalidated part of the labor
contract is governed by the standards of the collective agreement (Articles 14 and 16 of the Labor
Union Act).

■Payment of wages into bank accounts
With the consent of a worker, an employer can pay the worker's wages into a bank accountin the worker's name designated by the worker so that the wages can be paid to the worker on
the predetermined pay day.

44

■ Minimum wages (Minimum Wages Act)○ The minimum wage system is a system under which the government sets the least amountsof wage under the Minimum Wages Act, and employers (business operators) must pay theiremployees wages not less than those minimum wages. The minimum wages apply to all
workers, including part-time workers, the youth doing part-time jobs.
○ The regional minimum wage applies to all workers working at workplaces and theiremployers. Additionally, when a "special minimum wage" is specified, that wage is to be
applied. When both minimum wages are applicable, an employer must pay wages not lessthan the higher minimum wage.
○ Regarding a company having multiple workplaces in multiple prefectures, the applicable
prefectural minimum wage is the minimum wage of the prefecture where each workplace islocated, not of the prefecture where the company's head office is located.
○ See the lists of applicable minimum wages (p.80) for the regional minimum wage andspecial minimum wage (by industry).
○ The minimum wages are fixed on an hourly basis. The wages on a monthly or daily basis
are converted into hourly wages for comparison.
－How to compare wages with the minimum wages－
1. Hourly wage: Hourly wage ≥ Minimum wage (hourly)
2. Daily wage: Daily wage / Average regular working hours per day ≥ Minimum wage
(hourly)
3. Weekly or monthly wage: Weekly (monthly) wage / Average working hours per week
(month) ≥ Minimum wage (hourly)
4. Commission-based salary: Commission-based salary (total amount calculated for theentirety of the calculation period) / Total working hours for commission-based salaryduring the calculation period ≥ Minimum wage (hourly)○ When converting the minimum wage into an hourly basis, the following allowances orbenefits are not included:
1. Diligent or perfect attendance allowances, commuting allowances and family allowances
2. Occasional allowances (ex. bonus for a newly married employee)
3. Wages paid periodically with regular intervals of more than one month (such as bonuses)
4. Payments for overtime work, work on days off and late -night work45

■ Allowance for absence from work (Article 26 of the Labor Standards Act)For a day upon which a worker is absent from work for reasons attributable to the company(such as store renovation and production adjustment at plants), the company is required to pay
the worker an allowance equal to at least 60 percent of the worker 's average wage (allowance
for absence from work).

■ Average wages (Article 12 of the Labor Standards Act)
○ An average wage is used to calculate the following amounts:(1) Allowance for dismissal without advance notice(2) Allowance for absence from work
(3) Wage for annual paid leave(4) Industrial accident compensation, such as compensation for absence from work(5) Maximum pay reduction○ An average wage is calculated on the basis of the total wages paid for a period of threemonths preceding the latest payroll cutoff date.
Principle
Average wage ＝Total wages for the latest three months (total payment)
Total number of days of the three months (calendar days)

Note: A different calculation formula applies in such cases as where a calculation period includes aperiod of absence from work before and after childbirth.

Minimum average wage (if the wage is determined on a daily, hourly or piecework basis)
Total wages for the latest three months (total payment)
Total number of days of the three months (calendar
× 0.6
days)
Note: A different calculation formula applies in such cases as those where part of the wage is determinedon a monthly basis.

■ Guaranteed payment at piece rates (Article 27 of the Labor Standards Act)For workers employed on a piece-rate or subcontract basis, an employer is required to guarantee
a fixed amount of wages proportionate to their worki ng hours so that their earned wages do notdecrease unreasonably even in the event that the performed work volume is low.
The amount of guaranteed wages must be enough to guarantee the worker an income notsignificantly lower than his/her normal earned wages.

46

■ Roster of workers (Article 107 of the Labor Standards Act) and wage ledger (Article
108 of the Labor Standards Act)
○ An employer is required to prepare a roster of workers and a wage ledger for each worker at each
workplace, such as the headquarters, the head office and business offices, and enter the following
information therein.
◇ Information to be entered in a wage ledger: The records for each worker must be kept for five
years (for three years for the time being) from the date of the last entry.
(1) Name(2) Gender(3) Wage calculation period(4) Working days(5) Working hours(6) Hours of overtime work, work on days off and night work
(7) Amounts of basic wages, allowances and other wages(8) Amount of wage deduction◇ Information to be entered in a roster of workers: The records for each worker must be kept forfive years (for three years for the time being) from the date of retirement.
(1) Name(2) Date of birth(3) Personal history(4) Gender(5) Present address(6) Type of work engaged in (not necessary for workplaces continuously employing fewer
than 30 workers)(7) Date of hiring(8) Date of and reason for separation from employment (in the case where the reason forseparation from employment is dismissal, the reason must be included)(9) Date and cause of death○ As long as all necessary information is included, any format may be used. For example, it ispermissible to combine a wage ledger with a withholding ledger. An employer is allowed toprepare and keep both the roster of workers and the wage ledger in the form of electronic data,but must be prepared to readily display the two on a computer screen and submit copies thereof
whenever requested by a labor standards inspector.

47

11. Premium Wages(Article 37 of the Labor Standards Act)
If an employer has a worker work overtime or at night (in principle, from 10 p.m. to 5 a.m.), theemployer is required to pay the worker a premium wage at a rate that is not less than 25 percent of
his/her hourly wage. If an employer has a worker work on a statutory holiday, the employer isrequired to pay the worker a premium wage at a rate that i s not less than 35 percent of his/herhourly wage.
For more than 60 hours of overtime work per month, the rate of premium wages is not less than
50 percent.
* Applicable to small and medium-size enterprises from April 1, 2023.

*

Wages used for calculating increased wages exclude family allowances, commuting allowances, separation
allowances, child education allowances, housing allowances, extraordinary wages and wages paid for eachperiod exceeding one month. Whether these excluded allowances an d wages are applicable to allowances and48

wages is determined on the basis of their nature, rather on the basis of their name.

**

If predetermined monthly working hours differ from month to month, the monthly average of predetermined
yearly working hours is used instead.
Increased wages for night work must also be paid to managers and supervisors.

49

■ Substitute leave (Article 37, paragraph (3) of the Labor Standards Act)○ If a labor-management agreement is concluded at a workplace, an employer is allowed to
grant paid leave to workers who have worked overtime for more than 60 hours per month,instead of paying them premium wages at a statutory raised premium wage rate (e.g. 25
percent, the difference between 25 percent and 50 percent).
○ Even if workers have taken this paid leave, the employer still must pay them premium wages
at a rate that is not less than 25 percent.

■ Obligation to endeavor to raise premium wage rates○ Overtime work beyond the extension limits requires the prior conclusion of a labormanagement overtime agreement with a special clause. Under this labor -managementagreement, the employer must be committed to[i] setting the premium wage rate for overtime work beyond the extension limits;[ii] endeavoring to raise this rate above the statutory premium wage rate (25%); and[iii] endeavoring to minimize overtime work in excess of 45 hours per month.

■ Annual wage system○ An employer who adopts an annual wage system must also pay premium wages to workers
who have worked overtime or on a statutory holiday.
○ Under an annual wage system, if annual wages include premium wages for overtime work
and work on days off, labor contracts must clarify that annual wages include such premium
wages (e.g. for overtime work) so that wages for regular working hours can be clearly
separated from such premium wages.

5012. Protection of Women■ Limitation on belowground work (Article 64-2 of the Labor Standards Act)An employer is prohibited from assigning female workers to any belowground work if they
are pregnant or women within one year after childbirth who notify the employer of their intention
not to work belowground. An employer is also prohibited from assigning other female workers
to belowground excavations or other belowground work specified by Order of the Ministry of
Health, Labour and Welfare as work injurious to women (Article 1 of the Rules on Labor
Standards for Women).

■ Limitation on dangerous and injurious work (Article 64-3 of the Labor Standards Act)An employer is prohibited from assigning expectant or nursing mothers (referring to pregnant
women and women within one year after childbirth) to work involving the handling of heavymaterials, work in places in which harmful gas is generated and other work injurio us topregnancy, childbirth, nursing and the like. Among these kinds of work, work involving thehandling of heavy materials and work in places in which harmful gas is generated is also
prohibited for female workers other than expectant or nursing mothers. The scope of injurious
work and the scope of female workers prohibited from being assigned to such work are specified
by Order of the Ministry of Health, Labour and Welfare (Articles 2 and 3 of the Rules on Labor
Standards for Women).

■ Maternity leave before and after childbirth, etc. (Article 65 of the Labor Standards
Act)○ If a female worker who is expected to give birth within six weeks (or 14 weeks in case ofmultiple pregnancy) requests leave, an employer is not allowed to make her work (the delivery
day is included in maternity leave before childbirth).
○ In principle, an employer is not allowed to make a female worker work within eight weeks
after childbirth. However, if a female worker who gave birth not less than six weeks ago makesa request, an employer is allowed to assign her to work permitted by a doctor.
○ In the event that a pregnant woman has so requested, an employer must transfer her to otherlight activities.

"Delivery" and "giving birth" mean giving birth to a baby after the fourth month of pregnancy, including cases of51

stillbirth.

■ Limitation on working hours and work on days off, etc. of expectant or nursing mothers(Article 66 of the Labor Standards Act)An employer is not allowed to assign expectant or nursing mothers to overtime work, workon days off or night work if they request not to be assigned. Even if an employer adopts avariable working hours system (excluding the flextime system), the employer is not allowed tomake expectant or nursing mothers work in excess of the statutory working hours.

■ Time for child care (Article 67 of the Labor Standards Act)
If a female worker raising an infant under the age of one year makes a request, an employer
is required to give the female worker at least 30 minutes as time for child care twice a day, in
addition to a rest period.

■ Menstrual leave (Article 68 of the Labor Standards Act)
If a female worker for whom work during her menstrual period would be especially difficult
requests leave (she can take this leave on a half-day or hourly basis), an employer shall notmake the female worker work during her menstrual period.

5213. Act on Securing, Etc. of Equal Opportunity and Treatment between
Men and Women in Employment
The Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in
Employment (hereinafter referred to as the "Equal Employment Opportunity Act") prohibits
discrimination on the basis of sex and disadvantageous treatment by reason of marriage,
pregnancy, childbirth, etc. Additionally, the Act requires employers to take countermeasuresagainst sexual harassment in the workplace and measures to prevent harassment in relation topregnancy and childbirth, etc. by superiors and coworkers.
－ Outline of the Equal Employment Opportunity Act －Prohibition of discrimination on the basis of sex (Articles 5 and 6 of the Equal Employment
Opportunity Act)
Discrimination on the basis of sex is prohibited in relation to the recruitment, employment,
assignment (including allocation of duties and grant of authority), promotion, demotion, andtraining of workers, as well as regarding fringe benefits within a certain scope, change in job
type and employment status, encouragement of retirement, mandatory reti rement age, dismissal,
and renewal of the labor contract.

Prohibition of indirect discrimination (Article 7 of the Equal Employment Opportunity Act)Out of criteria upon recruitment and employment by reasons other than gender, applying
those specified by Order of the Ministry of Health, Labour and Welfare as being highly likely
to constitute substantial discrimination by reason of gender is prohibited if there are no
reasonable grounds to apply them.
[Acts prohibited as specified by Order of the Ministry of Health, Labour and Welfare]・Apply criteria concerning the worker's height, weight or physical strength upon recruitment
and employment
・ Apply criteria concerning the worker's ability to receive reassignment that results in therelocation of the worker's residence upon recruitment, employment, promotion or change in
job type
・ Apply criteria concerning the worker's experience of having been reassigned to otherworkplaces upon promotion

Prohibition of disadvantageous treatment by reason of marriage, pregnancy, childbirth, etc. (Article
9 of the Equal Employment Opportunity Act)・It is prohibited to establish a provision supposing marriage, pregnancy or childbirth as areason for separation from employment of female workers.
・It is prohibited to dismiss female workers for marriage.
53

・It is prohibited to dismiss or give disadvantageous treatment to female workers by reason ofpregnancy, childbirth, or for requesting maternity leave, or by other reasons specified by
Order of the Ministry of Health, Labour and Welfare.
・Dismissals of female workers who are pregnant or in the first year after childbirth are to be
void unless the employers prove that dismissals are not by reason of pregnancy, etc.

Countermeasures against sexual harassment (Article 11 of the Equal Employment Opportunity
Act)
Employers are required to take management measures to prevent problems caused by sexual
harassment in the workplace. Dismissal and other discriminatory treatment on grounds such asthat a worker has consulted with the employer about sexual harassment are prohibited.

Countermeasures against harassment in relation to pregnancy and childbirth, etc. (Article 113 of the Equal Employment Opportunity Act
Employers are required to take management measures to prevent harassment in relation topregnancy and childbirth, etc. in the workplace. Dismissal and other discriminatory treatment
on grounds such as that a worker has consulted with the employer about har assment in relation
to pregnancy and childbirth, etc. are prohibited.

Measures in connection with maternity health care (Articles 12 and 13 of the Equal
Employment Opportunity Act)
Employers are required to secure the necessary time off so that female workers who are
pregnant or in the first year after childbirth may receive the health guidance and medical
examinations and take the necessary measures to enable them to comply with the directions ofdoctors, etc. based on the results of these health guidance and medical examinations.

Dispute settlement assistance system (Articles 17 and 18 of the Equal Employment
Opportunity Act)
When any disputes arise between workers and employers, workers can seek assistance fromthe directors of Prefectural Labour Bureaus or conciliation by the competent Disputes
Adjustment Commission.

54

14. Child Care and Family Care Leave Act
To help workers balance work and family, employers are expected to improve their employment
environments to ensure employment management that complies with the Child Care and Family
Care Leave Act.
Employers are also required to take measures to prevent harassment in the workplace by superiors
or coworkers in relation to requests for or acquisition of child care or family care leave.
－ Outline of the Child Care and Family Care Leave System －Child care leave (Articles 5 and 9-6 of the Child Care and Family Care Leave Act)・A worker can take child care leave for his/her child until the child reaches one year of age on
two occasions by dividing the leave. (If his/her spouse also takes child care leave for the child,the worker can take child care leave for the child for up to one year until the child reaches one
year and two months of age. If the worker cannot find a place for the child at a day care c enter,
the worker can take child care leave for the child until the child reaches two years of age.)

Fathers' child care leave (parental leave) (Articles 9-2 and 9-5 of the Child Care and Family
Care Leave Act)
・A male worker can request parental leave for his child for up to four weeks, separately fromchild care leave, within eight weeks after child birth on two occasions by dividing the leave.
・Limited to cases where a worker has concluded a labor-management agreement, the worker
may engage in work during the parental leave within the range agreed thereby (there is theupper limit for days available for work).

Family care leave (Article 2, item (iv) and Article 11 of the Child Care and Family Care
Leave Act)・For one subject family member, a worker can take family care leave three times up to 93 days
in total.
・The subject family members of a worker include his/her spouse, p arents and children, thespouse's parents, and his/her grandparents, brothers, sisters and grandchildren.

Sick/injured child care leave (Article 16-2 of the Child Care and Family Care Leave Act)・A worker can take sick/injured child care leave for up to five days a year if he/she has one preschool child and for up to 10 days a year if he/she has two or more pre-school children.
・A worker can take sick/injured child care leave for the purpose of taking care of his/her sickor injured child, or having his/her child get a vaccination or a medical check -up.
・Sick/injured child care leave may be taken on a day or hourly basis.

55

Nursing leave (Article 16-5 of the Child Care and Family Care Leave Act)・A worker can take up to five days off for nursing leave a year if he/she has one subject family
member and up to 10 days off for nursing leave a year if he/she has two or more subject family
members.
・A worker can take days off for nursing leave for the purpose of looking after or taking care ofa subject family member in a care-requiring condition.
・Nursing leave may be taken on a day or hourly basis.

Measures to shorten working hours for child care (Article 23, paragraph (1) of the Child Careand Family Care Leave Act)・A worker who takes care of a child under three years of age can use a shortened working
hours system in which the regular daily working hours are shortened to six hours in principle.

Measures to shorten working hours for family care (Article 23, paragraph (3) of the Child
Care and Family Care Leave Act)・Employers are required to take any of the following measures for workers who take care of
their family members at least twice for three or more consecutive years: Shortened working
hours system, flextime system, staggered working hours system, financial assistance fornursing care service used by workers or other similar measures

Limitation on work in excess of regular working hours for child care (Article 16-8 of theChild Care and Family Care Leave Act)・A worker who takes care of a child under three years of age is exempt from work in excess of
his/her regular working hours per day if he/she makes a request.

Limitation on work in excess of regular working hours for family care (Article 16-9 of theChild Care and Family Care Leave Act)・A worker who takes care of a subject family member in a care-requiring condition is exempt
from work in excess of his/her regular working hours per day if he/she makes a request.

Limitation on overtime work for child care and family care (Articles 17 and 18 of the Child
Care and Family Care Leave Act)・If a worker who takes care of a pre-school child or a family member makes a request, theworker can limit his/her overtime working hours to 24 hours per month and 150 hours per year.

Limitation on night work for child care and family care (Articles 19 and 20 of the Child Careand Family Care Leave Act)・If a worker who takes care of a pre-school child or a family member makes a request, theworker is exempt from work at night (from 10 p.m. to 5 a.m.).

56

Provision of information to and confirmation of intention with individual notifiers (Article
21 of the Child Care and Family Care Leave Act)・ When receiving a notification concerning the pregnancy, childbirth, etc. of a worker or aworker's spouse, an employer must provide the worker with sufficient information on mattersconcerning the child care leave system (including that for fathers), etc. and confirm whether
he/she intends to take leave or not, individually.

Development of the employment environment (Article 22 of the Child Care and Family Care
Leave Act)・ In order to ensure workers' smooth applications for child care leave and parental leave,
employers should take any of the following measures.
Provision of training concerning child care leave and parental leave; Development ofconsultation systems concerning child care leave and parental leave; Compilation andprovision of concrete examples of their workers' acquisition of child care leave and parental
leave; Dissemination of information regarding their own systems and policies concerning childcare leave and parental leave internally to workers

Consideration for reassignment (Article 26 of the Child Care and Family Care Leave Act)・If an employer reassigns a worker and thus changes his/her workplace, the employer is required
to consider the worker's situation of caring for a child or family member.

Disclosure of the status of workers' acquisition of child care leave (Article 22-2 of the Child
Care and Family Care Leave Act)(To be enforced on April 1, 2023)
・ Employers who regularly employ over 1,000 workers must disclose the rate of their maleworkers' acquisition of child care leave, etc. once a year.

Prohibition of disadvantageous treatment (Articles 10, 16, 16-4, 16-7, 16-10, 18-2, 20-2,
Article 21, paragraph (2) and Article 23-2 of the Child Care and Family Care Leave Act)・Employers are prohibited from dismissing or otherwise treating disadvantageously workers
who have applied for or used child care leave, family care leave, sick/injured child care leave,nursing leave, the limitation on work in excess of regular working hours, the limit ation on
overtime work, the limitation on night work, measures to shorten regular working hours or the
like, or who have filed a notification concerning their own or their spouses' pregnancy,
childbirth, etc., or did not report the days they were available to work, etc. during parental
leave nor gave consent thereto.

Countermeasures against harassment in relation to child care and family care leave (Article

57

25 of the Child Care and Family Care Leave Act)・Employers are required to take management measures to prevent harassment in relation tochild care and family care leave in the workplace. Dismissal and other discriminatory
treatment on grounds such as that a worker has consulted with the employer about harassment
in relation to child care and family care leave are prohibited.

Dispute settlement assistance system (Articles 52-4 and 52-5 of the Child Care and Family
Care Leave Act)・To settle labor-management disputes over child care or family care leave or the like, both
employers and workers can seek assistance from the directors of Prefectural Labour Bureaus
or conciliation by conciliation committee members.

58

15. Countermeasures against Power Harassment in the Workplace
Countermeasures against power harassment(Article 30-2 of the Labor Policies

Comprehensive Promotion Act)
Employers are required to take management measures to prevent power harassment in theworkplace. Dismissal and other discriminatory treatment on grounds such as that a worker has
consulted with the employer about power harassment in the workplace are prohibited.

Dispute settlement assistance system (Articles 30-5 and 30-6 of the Labor Policies
Comprehensive Promotion Act)
When any disputes arise between workers and employers, workers can seek assistance fromthe directors of Prefectural Labour Bureaus or conciliation by the competent Disputes
Adjustment Commission.

5916. Protection of Minors (Persons Under 18 Years of Age)■ Minimum age (Article 56 of the Labor Standards Act)In principle, an employer is not allowed to employ a child until the first 31st of March thatcomes on after his/her 15th birthday (the end of the fiscal year in which he/she graduates fromjunior high school).
With permission from the Director-General of the competent Labour Standards Inspection
Office, however, an employer is allowed to engage children aged 13 or older only in light workthat is not injurious to their health or welfare in non-industrial business, such as newspaperdelivery, outside their school hours. The same rule applies to child actors under 13 years of age
in films and theatrical performances.

■ Age certificate (Article 57 of the Labor Standards Act)An employer of a minor is required to keep a certificate showing the age of the minor at theworkplace. A certificate of matters stated on the residence certificate can serve as a substitutefor this age certificate. For a child who an employer employs with permission, the employer isrequired to keep at the workplace a certificate from the head of such child 's school stating thatthe employment does not hinder his/her school attendance and written consent from the person
who has parental authority for such child.

■ Working hours and days off of minors (Article 60 of the Labor Standards Act)As the statutory working hours apply strictly to minors, in principle, an employer is notallowed to have minors engage in overtime work or work on days off. In principle, an employer
is also not allowed to have minors work under various variable working hours systems.

■ Night work of minors (Article 61 of the Labor Standards Act)In principle, an employer is not allowed to have minors engage in work during late night
hours (from 10 p.m. to 5 a.m.).

■ Restrictions on dangerous and harmful jobs (Article 62 of the Labor Standards Act) (Articles
7 and 8 of the Rules on Labor Standards for Minors)
An employer is prohibited from having minors engage in dangerous or harmful jobs because
minors are still physically and mentally immature.
(e.g.) ・Handling of heavy materials (weighing 30kg or more)・Work in places in which harmful gas is generated
・Work in places at least five meters above the ground (places from which minors
could fall)60

■ Labor contracts with minors (Article 58 of the Labor Standards Act)A labor contract with a minor must be concluded with the minor himself/herself. Neither aperson who has parental authority for the minor nor the agent of the minor is allowed toconclude the labor contract on his/her behalf.

■ Wage claim (Article 59 of the Labor Standards Act)
A minor can claim his/her wages independently. Neither a person who has parental authority
for the minor nor a legal guardian of the minor is allowed to receive his/her wages on his/ herbehalf.

61

17. Termination of Labor Relationship, etc.
[1] Termination of Labor Relationship
Termination of a labor relationship means that a worker leaves the company in any form andhis/her employment relationship with the company ends. Regarding termination of a labor
relationship, employers must pay attention to the following:

Resignation
Resignation is a worker's voluntary termination of his/her labor contract. Resignation isgoverned by the Civil Code because the Labor Standards Act has no provision for resignation.
Under the Civil Code, resignation becomes effective in two weeks from the date upon which
the worker expresses his/her intention to resign (Article 627 of the Civil Code). However, aworker whose wages are fixed for a certain period, such as workers receiving monthly wages,
may not resign until the end of the current period and must express his/her intention to resignin the first half of the current period (Article 627, paragraph (2) of the Civil Code).
(e.g.) If a worker who works for monthly wages during a period from the first day to the last dayof the month wants to resign on September 30, the worker must express his/her intention
to resign no later than September 15.

Mandatory retirement
A mandatory retirement system is a system in which a labor contract is automaticallyterminated when the worker reaches a certain age.
In cases where employers set the retirement age of their workers, such retirement age shallnot be lower than 60 (Article 8 of the Act on Stabilization of Employment of Elderly Persons).
In cases where an employer sets the retirement age below 65 years old, the employer must takeany of the following measures to secure stable employment for their workers until the age of
65:[i] raising of mandatory retirement age up to 65;[ii] introduction of a continuous employment system (referring to a system of continuing toemploy all elderly persons currently employed after the mandatory retirement age until
they become 65 years of age, if they wish to be employed);[iii] abolition of the mandatory retirement age (Article 9 of the Act on Stabilization of
Employment of Elderly Persons).
Additionally, an employer who sets the retirement age below 70 or who adopts a system ofcontinuous employment up to the age below 70 must make efforts to take any of the following
measures to secure workers' employment opportunities until the age of 70:[i] Raising of mandatory retirement age up to 70 yea rs of age;[ii] Introduction of a continuous employment system up to 70 years of age (including

62continuous employment by another employer);[iii] Abolition of the mandatory retirement age;[iv] Introduction of a system to conclude a business consignment contract with workers
continuously until the age of 70;[v] Introduction of a system to enable workers to engage in social contribution businesses
continuously until the age of 70 (Article 10-2 of the Act on Stabilization of Employment
of Elderly Persons).

Dismissal
Dismissal is an employer's one-sided termination of a labor contract.
* Grounds for dismissal must be specified in the rules of employment.
< Effect of dismissal >○ Open-ended labor contract
Article 16 of the Labor Contracts Act provides that a dismissal be treated as an abuseof right and be void if it lacks objectively reasonable grounds and is not considered tobe appropriate in general social terms.
○ Fixed-term labor contract with a fixed term
Article 17, paragraph (1) of the Labor Contracts Act provides that an employer may
not dismiss a worker working under a fixed-term labor contract until the expiration of
the term unless there are unavoidable circumstances.
< Dismissal due to reorganization >Dismissal due to reorganization is dismissal intended for staff cutbacks by reason ofdeteriorating business conditions. As court precedents suggest, an employer who
dismisses workers due to reorganization should negotiate with labor unions, give
explanations to workers and carefully consider the following:・ Whether staff cutbacks are needed・ Whether the employer has made all possible efforts to avoid dismissal
・ Whether the employer has selected workers to be dismissed according to objective
and reasonable standards
・ Whether the process of dismissal is appropriate* To avoid staff cutbacks, employers can shorten working hours (work sharing is
one of the options).
* To avoid dismissal, employers can reassign or temporarily transfer workers oroffer early retirement to workers.
* To make the process of dismissal appropriate, employers are required to consult
with labor unions or to explain to workers about the dismissal.

63

< Disciplinary dismissal >Disciplinary dismissal is dismissal of a worker as disciplinary action against the worker
for his/her malicious violation of rules. Employers must specify the kinds, degrees andrequirements of disciplinary dismissal in the rules of employment.
< Ordinary dismissal >Ordinary dismissal is dismissal of a worker who cannot perform his/her duties. Court
precedents suggest that ordinary dismissal can apply to the following workers:
・ Workers who show significantly poor work performance and are unlikely to improve
despite guidance・ Workers who are unlikely to return to work for a long time for health reasons・ Workers who cause work-related difficulties due to a significant lack of cooperative
spirit and are unlikely to improve< Statutory restrictions on dismissal >Laws prohibit dismissal in the following cases:[i]
Dismissal during a period of absence from work for injuries or diseases in the courseof business or within 30 days thereafter (Article 19 of the Labor Standards Act)[ii] Dismissal during a period of absence from work before and after childbirth or within
30 days thereafter (Article 19 of the Labor Standards Act)[iii] Dismissal by reason of the nationality, creed or social status of a worker (Article 3 of
the Labor Standards Act)[iv] Dismissal by reason of a worker's refusal of the discretionary work sys tem (Article38-4 of the Labor Standards Act)[v]
Dismissal by reason of giving a report to a Labour Standards Inspection Office(Article 104, paragraph (2) of the Labor Standards Act)[vi] Dismissal by reason of being a member of a labor union or performing a justifiable
act of a labor union or for other similar reasons (Article 7 of the Labor Union Act)[vii] Dismissal by reason of a worker's request for dispute settlement assistance orconciliation under the Act on Employment Promotion etc. of Pe rsons with Disabilities(Articles 74-6 and 74-7 of the Act on Employment Promotion etc. of Persons with
Disabilities)[viii] Dismissal on the basis of sex (Article 6 of the Equal Employment Opportunity Act)[ix] Dismissal by reason of a female worker's marriage, pregnancy, childbirth or absencefrom work before and after childbirth or for other similar reasons (Article 9 of theEqual Employment Opportunity Act)[x]
Dismissal by reason of a worker's request for dispute settlement assistance orconciliation under the Equal Employment Opportunity Act (Articles 17 and 18 of theEqual Employment Opportunity Act)[xi] Dismissal by reason of a worker's request for dispute settlement assistance orconciliation under the Labor Policies Comprehensive Promotion Act (Ar ticles 30-5
and 30-6 of the Labor Policies Comprehensive Promotion Act)[xii] Dismissal by reason of a worker's consultation regarding harassment in the workplace(Articles 11 and 11-3 of the Equal Employment Opportunity Act, Article 30-2 of theLabor Policies Comprehensive Promotion Act, and Article 25 of the Child Care andFamily Care Leave Act)[xiii] Dismissal by reason of a worker's request for confirmation or application of special
provisions concerning the insured elderly under the Employment Ins urance Act(Article 73 of the Employment Insurance Act)[xiv] Dismissal by reason of a worker's report of a violation to the Act for Securing theProper Operation of Worker Dispatching Undertakings and Improved Working
Conditions for Dispatched Workers (hereinafter referred to as the "Worker
64

Dispatching Act") (Article 49-3 of the Worker Dispatching Act)
Dismissal by reason of a worker's report of a violation to the Port Labor Act (Articles
49-3 of the Worker Dispatching Act as applied by replacing the terms pursuant to
Article 23 of the Port Labor Act)[xvi] Dismissal by reason of a worker's report of a violation to the provision concerningbusinesses for securing employment opportunities for construction workers under the
Act on the Improvement of Employment of Construction Workers (Article 49-3 of theWorker Dispatching Act as applied by replacing the terms pursuant to Article 44 of
the Act on the Improvement of Employment of Construction Workers)[xvii] Dismissal by reason of a worker's request for or acquisition of child care leave or
family care leave, etc. (Articles 10, 16, 16-4, 16-7, 16-10, 18-2, 20-2, Article 21,
paragraph (2), and Article 23-2 of the Child Care and Family Care Leave Act)[xviii] Dismissal by reason of a worker's request for dispute settlement assistance orconciliation for a dispute under the Child Care and Family Care Leave Act (Articles
52-4 and 52-5 of the Child Care and Family Care Leave Act)[xix] Dismissal by reason of a worker's request for explanations concerning the details of
the difference in treatment from ordinary workers and the grounds thereof, etc.
(Article 14, paragraph (3) of the Part-Time and Fixed-Term Workers Act)[xx] Dismissal by reason of a worker's request for dispute settlement assistan ce orconciliation for a dispute under the Part-Time and Fixed-Term Workers Act (Article
24, paragraph (2) and Article 25, paragraph (2) of the Part-Time and Fixed-Term
Workers Act)[xxi] Dismissal by reason of a worker's request for assistance and applica tion for mediation
to the director of the Prefectural Labour Bureau in resolving an individual labor related dispute (Article 4, paragraph (3) and Article 5, paragraph (2) of the Act on
Promoting the Resolution of Individual Labor-Related Disputes)[xxii] Dismissal by reason of whistleblowing (Article 3 of the Whistleblower Protection
Act)[xxiii] Dismissal by reason of a worker's acquisition of leave to execute the duties ofa saiban-in (lay judge) or for other similar reasons (Article 100 of the Act on
Criminal Trials with Participation of Saiban -in)
[xv]

65

[2] Advance Notice of Dismissal(Article 20 of the Labor Standards Act)
○ In order to dismiss a worker:○ An employer who cannot give a worker to be dismissed at least 30 days' advance noticemust give such worker the average wages for at least the number of days short of 30 days
(allowance for dismissal without advance notice).
○ If an employer gives advance notice of dismissal and pays an allowance for dismissal
without advance notice to a worker, the employer must pay the allowance to the worker nolater than the day of dismissal. If an employer dismisses a worker immediately without
giving advance notice, the employer must pay the worker an allowance for dismissal without
advance notice upon dismissal.

66

January

February

March[3] Exceptions to Advance Notice of Dismissal○ Advance notice of dismissal is not required in the following cases:
I. Dismissal of workers not requiring advance notice of dismissal (Article 21 of the Labor
Standards Act)[i] Workers

employed

on

a

daily

basis…………………………………………..
[ii] Workers employed for a fixed period notlonger than two months……………………
[iii] Workers employed in seasonal work for a
fixed

periodnotlongerthanfourmonths………………………………………
[iv] Workers in a probationary
period…………………………………………

67

II. Dismissal upon an employer's application (Article 20 of the Labor Standards Act)[i]

If it becomes impossible to continue business due to a natural disaster or otherunavoidable circumstances and the Director-General of the competent Labour
Standards Inspection Office approves[ii] If the worker is dismissed for causes attributable to the worker and the DirectorGeneral of the competent Labour Standards Inspection Office approves◇ Application for approval for not giving advance notice of dismissal
If an employer applies for approval for not giving advance notice of dismissal to a worker
in the case of dismissal for causes attributable to the worker, a Labour Standards Inspection
Office determines whether to give approval according to the criteria below, while taking into
consideration the years of service, job performance, status and responsibilities of the worker
and questioning both the employer and the worker about the circumstances.
[i]

A case where a worker committed any criminal offense, such as theft, embezzlement or
injurious assault, within the company[ii] A case where a worker negatively influences other workers by gambling or disturbing
the morality or discipline of the workplace[iii] A case where a worker misrepresented his/her background information, which consistsof conditions for his/her hiring[iv] A case where a worker changed his/her job[v] A case where a worker was absent from work without permission and just cause for aperiod of two weeks or longer and failed to comply with a demand for work[vi] A case where a worker failed to improve despite repeated warnings about his/herfrequent late arrivals at work and/or absences from work

○ Labor contracts of part-time workers and other fixed-term workers may be consideredvirtually as open-ended labor contracts even if they have been repeatedly renewed. If an
employer is not going to renew the employment of these workers, the employer must givethem advance notice of dismissal (see 2.[3] Term of Labor Contracts).

68[4] Certificate upon Separation from Employment, etc.
If a worker requests a certificate stating employment-related information as shown below
upon separation from employment, an employer is required to deliver such a certificate to theworker without delay (Article 22 of the Labor Standards Act).
[i] the period of employment, [ii] the kind of occupation, [iii] the position in the business,[iv] wages, and [v] the reason for separation from employment (in case of dismissal, including
the reason for dismissal)[5] Return of Money and Goods
In the event of a worker's death or separation from employment, if a right holder requests, anemployer is required to, within seven days, pay the wages and return the reserve funds, security
deposits, savings, and any other money and goods to which the worker is rightfully entitled,
regardless of the name by which such money and goods may be called (Article 23 of the Labor
Standards Act).

69

18. Rules of Employment(Articles 89 and 90 of the Labor Standards Act)
○ An employer who continuously employs 10 or more workers is required to draw up rules of
employment. The employer must ask the opinions of a representative of the workers whendrawing up the rules of employment and submit the completed rules of employment with astatement of such opinions to the Director-General of the competent Labour Standards
Inspection Office. This also applies when the rules of employment are changed. The
aforementioned "10 or more workers" include part-time workers.
* Rules of employment help maintain workplace order, stabilize working conditions and business
operations, and prevent unnecessary employment-related difficulties. Employers should draw up
rules of employment even if they employ fewer than 10 workers.

－ Matters Required in Rules of Employment －Information required[i]Matters pertaining to starting and finishing times, rest periods, days off, leave,and shifts in cases in which workers work in two or more shifts (includingchild care leave and family care leave under the Child Care and Family Care
Leave Act)

[ii]

Matters pertaining to methods of determining, calc ulating and paying wages(excluding special wages), dates for closing accounts for wages and increases
in wages[iii]

Matters pertaining to retirement (including grounds for dismissal)

Matters required if certain provisions are made[i]

If provisions for retirement allowances are made, matters pertaining to thescope of workers covered, methods of determining, calculating and paying
retirement allowances and the dates for payment of retirement allowances[ii]

If provisions for special wages (excluding retirement allowances) andminimum wages are made, matters pertaining thereto[iii]

If provisions for meal expenses, work supply expenses and other expenses tobe borne by workers are made, matters pertaining thereto[iv]

If provisions for safety and health are made, matters pertaining thereto[v]

If provisions for vocational training are made, matters pertaining thereto[vi]

If provisions for accident compensation and support for off -the-job injuries
and diseases are made, matters pertaining thereto[vii] If provisions for commendation and sanctions are made, matters pertaining totheir kind and degree[viii] If other provisions that apply to all the workers of the workplace are made,information concerning the provisions70

○ Rules of employment must not violate applicable laws and regulations, such as the Labor
Standards Act, or collective agreements. Portions of a labor contract that do not satisfy thestandards of rules of employment are invalid.
If separate rules of employment are formulated for some workers to provide them with working
conditions different from those for other workers, the original rules of employment should
include a provision that delegates the authority to establish such different working conditions
for the separate rules of employment.

71

■ Hearing of opinions from a representative of workers
The representative of the workers from whom opinions must be heard is a labor union organized
by a majority of all the workers of the workplace or, if such a labor u nion is not organized, aperson who represents a majority of all the workers of the workplace, including part-timeworkers. This person who represents a majority of all the workers must be elected in accordancewith the figure below.
The employer is required to give due consideration so that a person representing a majority of
the workers can smoothly perform duties concerning an agreement, etc. under law.

The person must meet thefollowing requirements(1) The person is not a manager or supervisor
as defined in item 2 of Article 41 of theLabor Standards Act.

Grounds(1) The person is a
representative of a majorityof all the workers.

(2) The person was elected by such method asvote or a show of hands after making it
clear that a person representing a majorityof the workers who is responsible forconcluding a labor-management agreement
or the like is to be elected, and was notelected based on the intention of theemployer.

(2) The person attempted to
become a representative of amajority of all the workers.
(3) The person acted justifiable
as a representative of amajority of all the workers.

Notification of (Changes to) Rules of Employment

Statement of Opinions

Date
Date
Director-General _____ Labour Standards Inspection Office
Mr./Ms.
As we have established/changed our rules of employment as described in theattachment, we hereby submit the rules of employment to you with a statement of
opinions.

This statement sets out our opinions about the proposed rules of employment,such opinions having been requested on

Major Changes
ArticleLabor Insurance
Number

Before Revision

Prefecture

Competen t
bodyJurisdiction

After Revision

Base No.

Branch No. Collective business No.

Name of
Workplace
Address
Name of Employer
Type ofBusiness/Number ofWorkers

Company as a whole
WorkplacepeoplepeopleName of the labor union or the representative ofa majority of all the workers
Procedures to elect the representative of amajority of all the workers

If you have changed the company name, also
enter the former name. If you have changed
the address, also enter the former address.

72

Title
Name

■ Restrictions on sanction provisions (Article 91 of the Labor Standards Act)
If an employer imposes sanctions, such as admonition, wage reduction, suspension from workor disciplinary dismissal, on workers for their violation of service discipline, the employer must
include specific grounds and the types and degrees of sanctions therefor in the rules of
employment.
The amount of a wage reduction for a single sanction case must not exceed 50 percent of thedaily average wage of such worker. If a worker is subject to sanctions for multiple cases for asingle wage payment period, the total amount of wage reduction must not exceed 10 percent of
the total wages for the wage payment period.

■ Dissemination of rules of employment and agreement under Article 36, etc. (Article 106of the Labor Standards Act)An employer is required to disseminate the rules of employment, an agreement under Article
36 and other labor-management agreements.
Means of dissemination of rules of employment and other labor-management agreements
An employer is required to disseminate the rules of employment and other labormanagement agreements by any of the following means:[i] Posting or keeping copies of the rules of employment and other labor -managementagreements in an easily visible location at each workplace at all times;[ii] Delivering written copies of the rules of employment and other labor -managementagreements to the workers; and/or[iii] Recording the rules of employment and other labor-management agreements onmagnetic tapes, magnetic disks or other equivalent forms of media so that theworkers have access to them at all times (e.g. in-house LAN).

73

19. Medical Examination and Safety and Health Management System■ Medical examination at the time of employment
This medical examination is not intended to determine whether or not to hire workers. A
worker who has undergone a medical examination that covers all the items listed below within
the last three months may submit the relevant medical certificate instead o f undergoing the
medical examination at the time of employment.

Medical Examination Items

Omission Criteria○ Questions on medical and work histories○ Examination of subjective and objective symptoms○ Measurement of height, weight, waist circumference, eyesight and hearing○ Chest X-ray examination○ Blood-pressure measurement○ Anemia test (hemoglobin content and erythrocyte count)○ Liver function test (GOT, GTP and γ-GTP)○ Blood lipid level test (LDL cholesterol, HDL cholesterol and triglyceride levelin blood serum)○ Blood sugar test
○ Urine test (test of sugar and protein in urine)

No examination items can beomitted for medical examination at
the time of employment.

■ Periodical medical examination
An employer is required to provide regularly employed workers with a periodical medical
examination by physicians for the items listed in the table below once during every one year
period, individually notify workers of the medical examination results, and keep them inindividual medical examination records for at least five years.

Medical Examination Items○ Questions on medical and work histories○ Examination of subjective and objective
symptoms

Omission Criteria (determined by physicians)－
・Height: Workers aged 20 or older
・Waist circumference:○ Measurement of height, weight, waist
circumference, eyesight and hearing (*)[i] Workers under 40 years of age (excluding workers aged 35)[ii] Pregnant female workers[iii] Workers with a BMI of less than 20[iv] Workers who measure their waist circumference bythemselves and report the measurement (for workers with a
BMI of less than 22)
・Chest X-ray examination○ Chest X-ray examination and sputum
examination○ Blood-pressure measurement

Workers under 40 years of age who are not any of thepersons listed below(**)
・Sputum examination
Workers who are diagnosed by a chest X-ray examination as
being unlikely to develop tuberculosis
Workers who are exempt from a chest X-ray examination－74

○ Anemia test (hemoglobin content and erythrocyte
count)○ Liver function test (GOT, GTP and γ-GTP)○ Blood lipid level test (LDL cholesterol, HDL
cholesterol and triglyceride level in blood serum)○ Blood sugar test

Workers under 40 years of age (excluding workers aged 35)○ Urine test (test of sugar and protein in urine)○ Electrocardiography－
Workers under 40 years of age (excluding workers aged 35)(*): A hearing test is a test of the hearing ability of workers with audiometers using sound levels of
1,000Hz and 4,000Hz. Workers under 45 years of age (excluding workers aged 35 and 40) do notneed to take this hearing test if they take another test of heari ng ability considered appropriate bya physician (excluding hearing ability for a sound level of 1,000 Hz or 4,000Hz).
(**): [i][ii]Workers aged 20, 25, 30 or 35
Workers at schools (including specialized training colleges and schools for specialized
education and excluding kindergartens), hospitals, clinics, midwifery homes, long -term carehealth facilities, care facilities for the elderly or other specified social welfare facilities[iii] Workers who are required by the Pneumoconiosis Act to undergo a medical examination forpneumoconiosis once every three years■ Stress check
From December 2015, employers who regularly employ 50 or more workers are required to
conduct a stress check for all workers (*) once every year.
(*) Excluding workers whose contract terms are shorter than one year and part -time workers who work less than
three-quarters of regular working hours of ordinary workers■ General safety and health manager
An employer is required to appoint a general safety and health manager for each workplace
if the workplace meets the criteria below:

(1)
(2)
(3)

Construction, transport, etc.
Manufacturing, electricity, etc.
Other types of business

Number of workers
100 or more
300 or more
1,000 or more

* For more details on business types, see the classification in the "Safety and Health Management
Organization" below.

■ Safety officer
An employer is required to appoint a safety officer for each workplace of business type (1)or (2) above if 50 or more workers are continuously employed at such workplace.

■ Health officer
Irrespective of business type, an employer is required to appoint a health officer for each
workplace if 50 or more workers are continuously employed at such workplace.

■ Safety and health promoter and health promoter
For each workplace at which 10 to 49 workers are continuously employed, an employer isrequired to appoint a safety and health promoter if the business type requires the appointmentof a safety officer (business types (1) and (2) above), or a health promoter if the business typeis any other.

75

■ Industrial physician
Irrespective of the business type, an employer is required to appoint an industrial physician
for each workplace at which 50 or more workers are continuously employed and havethe industrial physician perform necessary duties such as making the rounds at such
workplace.

■ Safety and health management organization

Health promoter

Number ofworkers7620. Labor Insurance (Industrial Accident Compensation Insurance and
Employment Insurance)■ Labor insurance
Industrial accident compensation insurance and employment insurance are collectively calledlabor insurance. As long as an employer employs at least one worker, the business falls under
the labor insurance requirement.
An employer who conducts a business covered by labor insurance must submit a notice of
establishment of an insurance relationship to the Director-General of the competent Labour
Standards Inspection Office or the director of the competent public employment security officewithin 10 days from the day following the day on which the insurance relationship is established.
If an insurance relationship is established in the middle of a fiscal year, an employer must
pay an estimated insurance premium to the competent Prefectural Labour Bureau, the competentLabour Standards Inspection Office or a financial institution (a bank or postal office) with adeclaration of the estimated insurance premium within 50 days from the day following the dayon which the insurance relationship is established.

■ Industrial accident compensation insurance○ Any worker, whether working full-time or part-time, is covered by industrial accident
compensation insurance. If a worker suffers an injury or a disease or dies due to any accident
while performing duties or during travel to or from work, insurance benefits under theindustrial accident compensation insurance scheme are provided to the worker or his/herbereaved family. In such a case, even if the employer fails to complete the procedure forestablishing an insurance relationship for industrial accident com pensation insurance, theworker can still receive insurance benefits, but the employer may be required to bear partof the costs necessary for the insurance benefits.
○ When an industrial accident occurs, the employer should promptly assist the victims. I f aworker dies or needs to be absent from work for four days or longer because of an industrial
accident, the employer must immediately submit a report of worker casualty to the DirectorGeneral of the competent Labour Standards Inspection Office. (Accidents that cause
workers' absence from work for less than four days must be compiled into a report and besubmitted every quarter.) In the event of a fatal accident or other serious disaster wherein
three or more workers become victims, the employer must immediately notify the competentLabour Standards Inspection Office of such matter.

■ Employment insurance○ If a worker becomes unemployed or any circumstances arise to make it difficult to continue
his/her employment or when a worker voluntarily receives vocational education or training77

or takes leave for taking care of children, employment insurance provides the worker withnecessary benefits to stabilize his/her livelihood and employment and also make it easierfor the worker to find a job. In addition, employment insurance aims to prevent
unemployment, redress the employment situation, increase employment opportunities, anddevelop and improve the abilities of workers or otherwise promote welfare of workers inorder to contribute to the employment security of workers.
○ The Employment Insurance Act requires an employer to report a public employment security
office (Hello Work) that a worker who meets the requirements has come to be covered by
employment insurance, irrespective of the intention of the business operator and the worker.
If an employer fails to properly report such fact, workers may suffer disadvantages inbenefits when they become unemployed. For the procedures for giving workers employment
insurance, an employer should contact the competent public employment security office.
○ All general workers are covered by employment insurance. On the other hand, part -timeworkers are covered by employment insurance if they meet both of the following
requirements:[i]

They are expected to be continuously employed for at least 31 days; and[ii]

They work at least 20 hours a week.

－Health Insurance and Employees' Pension Insurance－◇ The health insurance scheme aims to provide workers and their dependents with insurance
benefits for childbirth as well as diseases, injuries and death that do not occur in the courseof business in order to help stabilize the lives of the people and improve their welfare.
◇ The employees' pension insurance scheme aims to provide insurance benefits for the aging,disability or death of workers in order to help stabilize the lives of workers and theirsurviving families and improve their welfare.
◇ The places of business listed below are obligated by law to join the health insurance schemeand the employees' pension insurance scheme.
・All places of business of corporations
・ Places of personal business covered by the scheme at which at least five workers arecontinuously employed, such as companies, plants, stores and offices◇ To join these insurance schemes, an employer needs to submit necessary documents, suchas an application for enrollment in the scheme, to the competent branch office of the Japan
Pension Service.

[October 2022]

78

List of Consulting Organizations○ This is a list of major consulting organizations for labor-related issues.
○ The General Labor Consultation Corner, which is established in each Prefectural Labo ur Bureau
and Labour Standards Inspection Office, accepts consultations from workers and employers in
all fields of labor issues, such as dismissal, non-renewal of employment and personnel relocation.
The Corner also accepts applications for advice and guidance by the directors of Prefectural
Labour Bureaus or for conciliation by the competent Disputes Adjustment Commission.
Issue

Consulting Organization■ Working conditions, including dismissal andnon-payment of wages○ General Labour Consultation Corner
http://www.mhlw.go.jp/general/seido/chihou/kaiketu■ Working hours/soudan.html■ Wages and retirement allowances○ Labour Standards Inspection Office■ Management of workplace safety and health

http://www.mhlw.go.jp/kouseiroudoushou/shozaiann■ Industrial accident compensation insurance

ai/roudoukyoku/■ Job offering and job seeking■ Employment insurance■ Unemployment and other benefits for job
seekers■ Benefits for child care and family care leave■ Subsidies for promotion of employment■ Benefits for continued employment of senior○ Public Employment Security Office (Hello Work)
http://www.mhlw.go.jp/kouseiroudoushou/shozaiann
ai/roudoukyoku/

citizens■ Employment management for elderly,
disabled and foreign workers■ Equal treatment of men and women in theworkplace○ Employment Environment and Equal Employment■ Sexual harassment in the workplace■ Disadvantageous treatment and harassment inrelationtopregnancy,

childbirth,oracquisition of child care or family care leave,
etc. in the workplace■ Maternal health management■ Child care and family care leave

Office, Prefectural Labour Bureau
https://www.mhlw.go.jp/kouseiroudoushou/shozaian
nai/roudoukyoku/○ General Labor Consultation Cornerhttps://www.mhlw.go.jp/general/seido/chihou/kaiket
u/soudan.html■ Part-Time Work Act■ Disputes between labor unions and employers○ Labor Relations Commission■ Health insurance and employee s’ pension

Japan Pension Service (branch office)insurance■ Labor tribunal decision

District Court

79

(Reference) List of Minimum Wages by Prefecture
Regional minimum wages are as shown below. Additionally, special minimum wages are set forsome business types. See the dedicated website for detail.
FY2022 Revision of Minimum Wages by Prefecture
Revised minimum wages (yen)Amount ofPrefectures
Effective date
*Figures in the parentheses are those before revision.
increase
Hokkaido
920
(889)
31
Oct. 2, 2022
Aomori
853(822)
31
Oct. 5, 2022
Iwate
854
(821)
33
Oct. 20, 2022
Miyagi
883(853)
30
Oct. 1, 2022
Akita
853
(822)
31
Oct. 1, 2022
Yamagata
854
(822)
32
Oct. 6, 2022
Fukushima
858
(828)
30
Oct. 6, 2022
Ibaraki
911
(879)
32
Oct. 1, 2022
Tochigi
913
(882)
31
Oct. 1, 2022
Gunma
895
(865)
30
Oct. 8, 2022
Saitama
987
(956)
31
Oct. 1, 2022
Chiba
984
(953)
31
Oct. 1, 2022
Tokyo
1,072
(1,041)31
Oct. 1, 2022
Kanagawa
1,071(1,040)31
Oct. 1, 2022
Niigata
890
(859)
31
Oct. 1, 2022
Toyama908(877)
31
Oct. 1, 2022
Ishikawa
891
(861)
30
Oct. 8, 2022
Fukui
888
(858)
30
Oct. 2, 2022
Yamanashi
898
(866)
32
Oct. 20, 2022
Nagano908(877)
31
Oct. 1, 2022
Gifu
910
(880)
30
Oct. 1, 2022
Shizuoka
944
(913)
31
Oct. 5, 2022
Aichi
986
(955)
31
Oct. 1, 2022
Mie
933
(902)
31
Oct. 1, 2022
Shiga
927
(896)
31
Oct. 6, 2022
Kyoto
968
(937)
31
Oct. 9, 2022
Osaka
1,023
(992)
31
Oct. 1, 2022
Hyogo
960
(928)
32
Oct. 1, 2022
Nara
896
(866)
30
Oct. 1, 2022
Wakayama
889
(859)
30
Oct. 1, 2022
Tottori
854
(821)
33
Oct. 6, 2022
Shimane
857
(824)
33
Oct. 5, 2022
Okayama
892
(862)
30
Oct. 1, 2022
Hiroshima
930
(899)
31
Oct. 1, 2022
Yamaguchi
888
(857)
31
Oct. 13, 2022
Tokushima
855
(824)
31
Oct. 6, 2022
Kagawa878(848)
30
Oct. 1, 2022
Ehime
853
(821)
32
Oct. 5, 2022
Kochi
853
(820)
33
Oct. 9, 2022
Fukuoka
900
(870)
30
Oct. 8, 2022
Saga
853
(821)
32
Oct. 2, 2022
Nagasaki
853
(821)
32
Oct. 8, 2022
Kumamoto
853
(821)
32
Oct. 1, 2022
Oita
854
(822)
32
Oct. 5, 2022
Miyazaki
853
(821)
32
Oct. 6, 2022
Kagoshima
853
(821)
32
Oct. 6, 2022
Okinawa
853
(820)
33
Oct. 6, 2022
< Access the dedicated website for minimum wages from here.>(October 2022)
80